Tax Deductions for Assisted Living Costs
Since it is tax season, many caregivers of our clients who are residents of an assisted living facility inquire about tax deductions for assisted living costs. The IRS provides rules for deducting certain qualified long-term care costs as medical expenses. Normally, the costs of nursing home care should be deductible, but the status of Assisted Living Facility (ALF) costs has not been as clear. For ALF residents, qualified long-term care costs are “necessary rehabilitative services, maintenance or personal care services that are (1) required by a chronically ill individual, and (2) provided pursuant to a plan of care by a [...]