Tax deductions can be a useful way to balance the cost of senior living. You may be eligible for certain deductions on your federal tax return, depending on the type of services and the level of care you or your loved one require.
The IRS allows deductions for the cost of housing and meals for older people receiving long-term care in a home or community due to chronic illness or the inability to live alone. Assisted living residents may qualify for this deduction if a physician certifies that they have been unable to perform at least two daily activities (such as eating, bathing or dressing) without assistance for at least 90 days. The same deduction can apply to people who require substantial supervision because of a cognitive impairment, such as Alzheimer’s disease.
An adult child paying for his or her parent’s care may also qualify for the tax deduction, if the adult child can claim the parent as a dependent.
Care Assist Solutions, LLC is pleased to provide this basic information regardingt the possible tax deductions associated with senior living; however, we encourage you to consult a certified tax advisor or CPA for further information regarding your unique situation.
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