Assisted Living Expenses

[wethepeople]

My client is in her 80's and single. She was living in Assisted Living Care facilities for the entire year in 2023.

She paid approximately $80,000.00 for the services provided.

Can she deduct this as a medical expense on Schedule A?

Thank you.

[PATAX]

Did she have to go there because of  medical reason(s)? Take a look at quick finder and taxbook.

[wethepeople]

Thanks for speedy reply.  I'll check with her son on that, but I believe she did need some medical care.

Where do I find quick finder and textbook?

[PATAX]

You're welcome. You can find  quickfinder and the taxbook online, and order one, you'll probably be able to get it at a discounted price since tax season is over.

[TaxGuyBill]

https://www.irs.gov/publications/p502#en_US_2022_publink1000178969

[BobKamman]

I was going to suggest Pub 502, a secondary source that's free rather than a secondary source based on other secondary sources that is for sale.  (Does JK Lasser still sell reprints of Pub 17?)  But Pub 502 is somewhat ambiguous depending on whether you are looking for "Qualified Long-Term Care Services" on Page 10, or "Nursing Home" on Page 11.  I think both were written decades ago, when there was not the wide range of "assisted living" residential choices for seniors and disabled persons.  

Where I'm from, $80,000 gets you a lot of medical services.  Elsewhere, it's more like the fringe benefit you get at the White House.  (Of course, the former doctor there, now in Congress, was known for handing out pills.)  That's why it's cheaper for some people just to live on a cruise ship year-round.  

[Terry53029]

See link. https://www.seniorliving.org/assisted-living/taxes/

[BobKamman]

That garbage was obviously written by someone with limited knowledge of tax law.  Also, limited fluency with the English language.  Consider this sentence:  "Independent living is typically not tax deductible, unless an older adult is in a continuing care retirement community or medical services provided by a home care nurse or caregiver."

[MICHAELMARS]

It depends on the amount of assistance she needs.  I don't recall the formula but 2 life services you deduct 40% 3 life services 50% [made up numbers]  I find that most facilities will tell you how much of the amount can be deducted. 

[BobKamman]

I vote for 2 activities of daily living = 100% deductible

[Bsch4477]

They should check with the facility. They can often tell the client how much of the fee can be attributed to health care and therefore deductible as a medical expense. 

[BobKamman]

@Bsch4477 That is the case when the taxpayer is in good health but the residential establishment has medical personnel and equipment available when needed by residents who are then eligible to use them -- sort of like an insurance policy.  The "accounting" will tell the resident what percentage of payments they made were for the operation of the medical side of the services provided.