As people age, they may require assistance with daily activities. Assisted living facilities provide a range of services, from help with dressing and grooming to medication management and meal preparation. These services can be expensive, but there may be tax deductions available to help offset the costs.

What Expenses Are Tax Deductible?

The Internal Revenue Service (IRS) allows taxpayers to deduct certain medical expenses, including those related to assisted living, on their tax returns. To qualify for a tax deduction, the expenses must be considered “qualified medical expenses” and exceed 7.5% of the taxpayer’s adjusted gross income (AGI).

Qualified medical expenses can include:

  • The cost of medical care provided by physicians, nurses, and other medical professionals
  • Prescription medications and medical equipment
  • Long-term care insurance premiums
  • Transportation to and from medical appointments
  • Home modifications to accommodate disabilities
  • Assisted living expenses

It is important to note that only the portion of the assisted living expenses that are considered “medical care” can be deducted. This includes the cost of medical services, such as medication management and assistance with activities of daily living, but not room and board or other non-medical expenses.



Who Qualifies for Tax Deductions?

Tax deductions for assisted living expenses are available to taxpayers who meet certain criteria. To be eligible, the individual or their spouse must have been certified by a licensed healthcare provider as chronically ill. This means that they require substantial assistance with at least two activities of daily living or have a severe cognitive impairment, such as Alzheimer’s disease.

Taxpayers who are caring for a chronically ill spouse or dependent may also qualify for tax deductions, even if they themselves are not chronically ill.


How to Claim Tax Deductions for Assisted Living Expenses

To claim tax deductions for assisted living expenses, taxpayers must itemize their deductions on their tax return using Form 1040. They should keep detailed records of all medical expenses, including receipts and statements from the assisted living facility.

Taxpayers should also obtain a written certification from a licensed healthcare provider that certifies that they or their spouse/dependent are chronically ill. This certification should include the date the individual was certified as chronically ill and that the condition is expected to last for at least 90 days.




Tax deductions for assisted living expenses can be a valuable way for seniors and their caregivers to offset the costs of care. By understanding what expenses are deductible and who qualifies for deductions, taxpayers can take advantage of this tax benefit. Remember to keep detailed records and obtain a certification from a licensed healthcare provider to ensure that you can claim the maximum deduction allowed by the IRS.

If you or a loved one is considering assisted living, contact Well Homed Assisted Living today at (410)-498-6090 to learn more about our services and schedule a tour. We are committed to providing compassionate and personalized care in a comfortable and supportive environment. Don’t hesitate to reach out to us to see how we can help you or your loved one live well at Well Homed Assisted Living.