What Tax Deductions Are Available For Assisted Living Expenses

Author

The Auberge at Aspen Park

Posted on

Sep 16, 2021

Book/Edition

Utah - Utah

Share This

To see more information about The Auberge at Aspen Park, CLICK HERE

An assisted living facility is a long-term senior living option for older adults who need support with activities of daily living (ADLS), such as personal care, medication management, bathing, dressing, and toileting.

Rather than round-the-clock care though—like in a nursing home— assisted living can help fill in the gaps on an as-needed basis while still allowing the senior to enjoy an independent, engaging, and purposeful life!

According to the Genworth Care Survey, the average annual cost of a private one-bedroom in an assisted living community is $51,600, with a daily median rate ranging between $99 to $220 per day (depending on the state).

We know that there can be some sticker shock when viewing those numbers, but it’s important to understand the full scope of service that you receive for the cost. For example, these rates cover housing, personal care services, and overall support for someone who is precious to you—and you can’t put a price tag on that!

Fortunately though, you can still take part in some tax benefits that may be able to offset this bottom line cost. Learn more about this below or speak to a representative at Frontier Management for more information today.

Can You Write Off Assisted Living On Your Taxes?

Yes, if you live in an assisted living facility, you can generally write off a number of medical expenses included in the fees for assisted living as well as other qualified long-term care services on your taxes—with some qualifications and restrictions, of course.

In addition to this, the federal government also recognizes the financial burden on family members who help pay for assisted living for a loved one. That means that if you have a senior dependent in assisted living that is considered a dependent, then you may be able to take this deduction.

Or if you contribute more than 10% in support as part of a “multiple support agreement” that pays 50% or more of the resident’s support, you may also still be eligible for the deduction.

The IRS usually considers a qualifying relative to be a father, mother, grandparent, mother-in-law, father-in-law, stepmother, or stepfather. Here is information about claiming a parent as a dependent.

What is the Medical Expense Deduction for 2020?

Any qualifying medical expenses that make up more than 7.5% of an individual’s adjusted gross income can be deducted from taxes, and you can only claim care expenses that you paid during the 2020 tax year.

For example, if your AGI was $50,000 last year, then you can claim the deduction for the amount of medical expenses that exceed $3,750.

As this is different than previous years in which the floor was set at 10%, taxpayers should learn more about all of the requirements to qualify for the medical tax deduction in the year 2020.

Requirements for Assisted Living Tax Deductibility

To deduct certain medical expenses, an assisted living resident must meet the following criteria:

A licensed health care practitioner, doctor, or nurse must certify that the resident is chronically ill; unable to perform a minimum of two activities of daily living (bathing, continence, dressing, etc.) on their own; or if they need substantial supervision because of dementia, Alzheimer’s disease, or another severe cognitive impairment for 90 days.

A plan of care must be prescribed by a social worker, doctor, or nurse. Most assisted living communities develop a plan of care using medical evaluation from a licensed healthcare provider, a needs assessment, and input from the resident and caregiver.

However, even if a resident does not meet the definition of “chronic illness,” they may still be able to deduct medical expenses, including entrance fees. Assisted Living communities and tax advisors are aware of these deductions and can provide specific information to help you or a loved one.

What Assisted Living Expenses are Tax Deductible?

Medical expenses generally make up at least a portion of the monthly service and entrance fees at assisted living communities. For some residents, the entire monthly rental fee might be deductible, while for others, only specific personal care services would qualify for a deduction.

Although you can’t deduct general health expenses, such as health club dues or vitamins, you can deduct many types of professional medical fees. Some common assisted living medical expenses that can be written off include:

  • Prescription drug costs and insulin
  • Health insurance premiums
  • Mental health expenses, such as the cost of therapy
  • Dental expenses, including dentures, fillings, x-rays, and other orthodontic appliances
  • Expenses incurred due to a medical need, such as travel to medical appointments and parking fees.
  • Assisted Living entrance or initiation fees directly related to medical care, such as care plan development and assessment fees
  • Nursing services (even if the person performing the service is not a nurse)
  • Meals and lodging at a hospital if the principal reason for being there is to receive medical care and as long as it costs $50 or less each night for each person

Other Articles You May Like

Finding New Joy: Overcoming Challenges in Senior Romance

We live longer, healthier lives than ever before, which has upended many stereotypes about what it means to be over 60. More seniors are engaged and active well into their 80s and beyond. With so many more years ahead of us, its no surprise that dating among the senior set has also increased. Whether you have already dipped a toe into the senior dating scene or are curious about getting started, here are some helpful tips to keep in mind on your journey. Be ConfidentSocial norms are always changing. Today, its perfectly acceptable for you to make the first move and ask someone on a date, regardless of your background or gender. Whether you are using a smartphone dating app or website- LinkOpens in New Tab or chatting up a neighbor, having confidence in yourself is key. Keep an Open MindDont be too quick to judge, keep an open mind, and be an attentive listener. Ask questions. Be present in each conversation. This will make your date more engaging and enjoyable. Remember that those you are dating, like you, will have lived full lives of love, loss, hard work, and joy. This can all seem overwhelming, but it doesnt have to be. It can be truly thrilling to discover more about another person with a rich, full life.   Be Upfront With Your ExpectationsWhat are you looking to get out of a new relationship? Are there certain things that are absolutely off the table? Maybe you are seeking long-term commitment over a more casual situation. While you dont want to rule out a potential partner right away, it can be helpful to have these conversations early on to avoid hurt feelings.Dont Dwell on the PastWhile it can be fun to reminisce about certain moments in time, try not to dwell too much on the past- LinkOpens in New Tab on your first couple of dates. This should be time spent getting to know each other and your likes and interests. While your past informs who you are today, its not all that there is to enjoy. Dont fail to mention your current hobbies and interests. Sharing them can be a lot of fun!Be Respectful and KindMost first dates can be pleasant if you approach someone with kindness and respect. Youll no doubt be nervous, but dont forget the power of a positive attitude and a cheerful smile. Pay attention to your date and how they react to the way a conversation is going. Dont take offense if they dont respond how you might expect them to. A little bit of kindness can go a long way, whether you are seeking friendship or romance.Explore New Connections at Friendship VillageFriendship Village of South Hills, a senior living community in Upper St. Clair, Pennsylvania (near Pittsburgh), is an exceptional place to pursue your passions and make new connections. Join a club, sign up for a group exercise class, or socialize over a nice meal or glass of wine. Here, every day is full of opportunity and the excitement of new adventure awaits around every corner.Contact us to learn more! 

Discover the Fountains of Hope: A Gracious Oasis for Seniors

At The Fountains of Hope, we believe that every chapter of life deserves to be celebrated. Our senior living community, nestled along the beautiful Gulf Coast in Sarasota, Florida, offers a serene and supportive environment for residents seeking assisted living, memory care, and short-term respite care. Lets dive into what makes our community truly special.Our Distinctive FeaturesThoughtful Services and AmenitiesPrivate Studio, One, and Two-Bedroom Apartments: Our residents enjoy spacious and comfortable living spaces, each thoughtfully designed to provide both privacy and community.Whole Person Wellness: We focus on holistic well-being, nurturing the mind, body, and spirit through engaging activities, nutritious dining, and personalized care.Convenient Location: Situated close to The Mall at University Town and within reach of the Lakewood Ranch Medical Center, our campus offers convenience and accessibility.Assisted Living with IndependenceAt The Fountains of Hope, we understand that independence matters. Our assisted living services provide a helping hand with day-to-day routines, including bathing, grooming, dressing, and medication management. Residents can preserve their autonomy while receiving the support they need.Life FulfillmentGracious Living: Our community exudes warmth and hospitality. Residents form meaningful connections with fellow neighbors and staff.Month-to-Month Structure: Say goodbye to long-term contracts and large entrance fees. We offer flexibility and peace of mind.Testimonials from Our ResidentsI have interviewed in the last 5 1/2 years my wife lived here every night and facility in the whole Bradenton-Sarasota area, and I can tell you by far this is no place to go if you want to be surrounded by really friendly and wonderfully staffed individuals. The medical service is top-notch. A Satisfied ResidentJoin Our CommunityAre you or a loved one seeking a place where wellness, fulfillment, and compassionate care intersect? Look no further than The Fountains of Hope. Contact us at (941) 316-6487 or visit our website to learn more:Note: The Fountains of Hope is located at 2250 Jesus Way, Sarasota, FL, 34240. We are open from 8:00 AM to 6:00 PM daily. 

Senior Living Education Series: Types of Senior Living

At Sagora Senior Living we are constantly creating new experiences to engage our residents and find exciting ways to showcase our amazing communities and how we truly embrace each moment we create together! This year we are introducing a new segment that you will see occasionally on our blog. The Sagora Senior Living Education Series will be featured from time to time and will provide useful information to help educate our community. Our first Sagora Senior Living Education piece is a deep dive into the different types of senior living! According to the U.S. Department of Health and Human Services, the number of people at least 65 years old who will need to move to senior living communities at some point is predicted to rise from 15 million in 2000 to 27 million by 2050. A time may come when you or your loved one decide that moving to a more supportive environment like a senior living community is the best way to age optimally and ensure access to quality care. The options and information can be a bit overwhelming. Read on to learn more about your options and which type of community might be right for you or your loved one. What Are Senior Living Communities, Exactly?Senior living communities are communities or housing arrangements designed to cater to the living requirements of older adults and provide safe, healthy, and comfortable long-term care. Some communities cater to the general needs of older adults, such as physical accessibility, while others are specifically designed for people with chronic cognitive health conditions like dementia. Senior living communities may also provide recreational and fitness facilities, housekeeping services, continuing education opportunities, transportation assistance, medical care services and other essential and non-essential services to support residents in everyday life. Signs Its Time to Consider Senior LivingAccording to Richard Marottoli, M.D., a geriatrics specialist at Yale Medicine in Connecticut, its time to consider senior living if you feel isolated in your current living environment and want more of a community. Senior living communities may also be best for you if home maintenance and upkeep become too bothersome or if you worry about leaving your home unattended when traveling, he adds. Sarah Hobgood, M.D., a geriatrics specialist at VCU Health in Richmond, Virginia, agrees with Dr. Marottoli, adding that its time to consider senior living if:You need help with instrumental activities of daily living (ADLs) like planning your meals, shopping for groceries, and managing your medications.You experience social isolation or a decline in how often you go out and engage with peers.Youve lost your partner or other family members in the home.Youve been diagnosed with memory problems. Different Types of Senior Living CommunitiesJust like people, not every senior living community is created equal. Consider how the various types of communities differ as you assess the needs of yourself or your loved one. While there are 7 main types of senior living, at Sagora Senior Living we specialize in the 4 most common options Independent Living, Assisted Living, Memory Care, and Respite Services. Independent living (Offered at Sagora Senior Living Communities)Designed for older adults looking to enjoy the benefits of a community while maintaining their freedom. Independent living offers basic services including dining options and regular housekeeping. Independent living comes in many forms, from subsidized senior housing to continuing care retirement communities. This can be a great introduction to senior housing as it provides the best of both worlds. At Sagora Senior Livings Independent Living communities, you wake up and the day is yours and yours alone. Our comfortable apartments and cottages, unparalleled service and numerous amenities mean you can truly embrace the retirement lifestyle you deserve! Assisted Living (Offered at Sagora Senior Living Communities)Balancing the line between independent living and additional support care are assisted living services. This option can be perfect for those needing a little more assistance. With on-call staff, trained chefs, scheduled activities and more, assisted living communities are a popular option for many aging Americans. At Sagora Senior Living, we understand having people you can depend on is important. Our Assisted Living communities provide additional support services and personal care for our residents when needed. Our team members aim to maximize your independence and comfort. This, combined with our five-star amenities, relaxing living spaces and enriching activities, gives you a peaceful home with a family of people you can trust. Memory Care (Offered at Sagora Senior Living Communities)This specialized senior housing option caters to a safe and secure environment for those suffering from illnesses such as dementia and Alzheimers. Offering around-the-clock care, residents receive the attention they need. Sagora Senior Livings memory care program is designed to meet the dynamic needs of families and seniors dealing with Alzheimers, dementia and other memory-related diseases. We have experienced and compassionate team members that provide love and comfort to our residents every day. It is our mission to cherish and support our residents in every way possible to ensure a complete and fulfilling life. Consistent sights, sounds, aromas, and objects increase comfort and decrease anxiety. Residents have the freedom to interact with others or have privacy. Team Members communication with residents soothes and helps redirect their focus to positive memories and activities. We care, and it shows. Respite Services (Offered at Sagora Senior Living Communities)Are you a caregiver looking for support? Respite services may be the solution to help your loved one live in place. Respite services provide professional assistance with daily activities and provide a break from the emotion and physical toll of caregiving. At Sagora Senior Living, we provide short term respite care in our Assisted Living and Memory Care Communities. Our caregivers provide the assistance and companionship you need in order to maintain your lifestyle and care while your caregiver is away. We know that one size does not fit all! Thats why we develop personal plans tailored to meet your specific needs and goals. Residential Care HomesFor those not requiring 24-hour assistance, residential care homes can be the right fit. They offer a certain level of independence while providing assistance with daily activities. These communities help with everything from transportation to medication distribution to make day-to-day life a little easier. Skilled NursingSkilled nursing homes are unique in that they provide 24-hour medical care. Staffed with in-house nurses, doctors and other medical practitioners, skilled nursing facilities provide a high level of assistance for those with medical conditions. Retirement Community/55+ CommunityGet social and stay active at a traditional retirement community. With several styles of communities, from age-restricted active adult communities to leisure communities, there are options available for almost any senior. Retirement communities make up for their lack of in-home care with greater resident autonomy, superior amenities, and far-reaching social platforms. What Experts Say About Choosing the Right Senior Living CommunityWhether an older adult should move to a senior-specific residence, and which one, if so, is highly dependent on individual circumstances, says Brock Beamer, M.D., a geriatrician with the Geriatric Research, Education and Clinical Center in Maryland. Generally, your choice of senior living communities will depend on affordability, proximity to family and friends, and available residences in the geographical area you wish to live in, explains Dr. Beamer. Meanwhile, Dr. Hobgood, recommends considering the complexity of any medical conditions you may have and what kind of senior living community might be able to cater to your health needs now and years in the future. She advises that you also think about how much you prefer socializing with other people and whether you might prefer aging in place in the future (and what kind of resources you might need to make that arrangement a sustainable one). Before making a decision, visit any communities youre interested in, and spend as much time as possible to get a sense of what living there might look like, advises Dr. Marottoli. Also, speak with people who live there to get their views on the benefits and drawbacks of living in the community. Furthermore, consider a communitys proximity to your health care providers, family members and friends, transportation resources and activities youre involved in, says Dr. Marottolo. By considering these factors, you can make your move and transition into a senior living environment a more seamless and comfortable one. Ultimately, its about finding a place where you or your loved one feels respected, listened to, and cared for. We are proud to play a vital role in helping seniors live longer and the best life possible. With 62 communities in 12 different states, Sagora Senior Living offers seniors the chance to live in active, social communities where they can thrive on a daily basis. 

Local Services By This Author

The Auberge at Aspen Park

Memory Care 1430 E 4500 S, Salt Lake City, Utah, 84117

The Auberge at Aspen Park is a community specifically designed to serve the needs of individuals living with Alzheimers disease, dementia and other forms of memory loss. At The Auberge, residents enjoy an active, engaging lifestyle that promotes wellness and independence. It is our goal to keep our residents linked to resources and opportunities that fulfill their needs and interests. Residents have opportunities every day to participate in a variety of life-enriching activities and events designed to stimulate the mind, body, and soul. Our talented team of dedicated and caring staff are there when you need them. Its Inspired Living Reinvented!