Tax deductions can be useful in balancing the costs of senior living. Depending on the type of services and level of care required, older adults may be eligible for certain deductions on their federal tax return.
The IRS allows deductions for the costs of housing and meals for qualifying seniors receiving long-term care in a home or community due to chronic illness or the inability to live alone. Assisted living or supportive living residents may qualify for these deductions if a physician certifies that they have been unable to perform at least two activities of daily living (such as eating, bathing or getting dressed) without assistance for at least 90 days. The same deductions can apply to those who require substantial supervision because of a cognitive impairment, such as Alzheimer’s disease.
A child paying for a parent’s care may also qualify for the tax deductions if the child can claim the parent as a dependent.
Our brochure, A Guide to Senior Living Tax Deductions (PDF), provides more details about how these deductions may apply at Atria. While we are happy to provide this introduction to the possible tax benefits of senior living, we encourage you to consult a tax advisor for further information.