How Do Tax Deductions Work with Assisted Living and Memory Care Expenses?
Depending on the types of services and care you need, you may be eligible for deductions on your federal tax return. This is one way that many families offset the costs of assisted living or memory care expenses.
If you or your loved one has a chronic illness or cannot live alone, the IRS allows deductions for housing and meal expenses. You also may qualify for these deductions if a doctor states that you have a cognitive impairment or cannot perform two functions of daily life on your own, like eating or getting dressed.
If you are paying for your parent’s care, you may also be eligible for tax deductions if they are considered your dependent on your tax return.
There are several avenues by which you or your family members can receive tax deductions, depending on your particular situation. If you have any questions or concerns, please contact us so we can provide you with guidance and resources.