When you have decided to help your parents with all ADLs or Activities of Daily Living, you will come across many options. Out of those options, assisted living stands out as the best choice. But it’s expensive so they need a tax deduction.
Assisted Living is a trained program, which is provided to elderly individuals who suffer from ADLs, such as remembering to take the medications or getting dressed. But assisted living can be pretty expensive for which many people cannot afford it.
For such reasons, the government has provided the assisted living tax deductions for all the assisted living residents. The senior citizen communities that rely on assisted living programs will not have any issues when it comes to providing care and the cost of the medication.
Table of Contents
Things to know about assisted living
Recent researches have provided evidence that, within an Assisted Living community, the average cost of a one-bed apartment is over $3000/month. But the cost is said to be much lesser than the cost of nursing home care or home health.
But the cost might vary and the majority of the assisted living communities utilize a tiered model pricing, which delivers a base level of services. Individuals who require little care will opt for the basic plan. All the residents are evaluated daily, which helps in determining whether they need additional services or not.
What are the requirements for the assisted living tax deductions?
There are several qualifications, which the residents should be if they want to deduct the tax for assisted living. Look below!
- The resident applying for the tax deduction for an assisted living must be considered chronically ill. There are two ways you can do that. Firstly, they should not be able to perform two activities of ADLs by themselves. The other activities are continence, eating, bathing, dressing, toileting, and transferring. Lastly, the residents need substantial supervision because of Alzheimer’s or other forms of dementia.
- The resident’s care should be provided through licensed professionals and also under a particular care plan. The care plans stand out as the written outlines of all the regular services, which a resident will get. Under this option, it includes assisting with all the daily living activities.
Who can claim the assisted living deduction?
If the members of your family in the nations of Mexico, Canada, or the US are legally dependent, you are free to claim a tax deduction in assisted living. As a part of a multiple support agreement, if you donate over 10% of the support, it will pay more than 50% for the resident’s assisted living support. Apart from that, you will still be eligible to get the tax deduction for assisted living without any issues.
Assisted living tax deduction: Types of medical expenses will get deducted
Given below is a list of medical expenses, which will receive a deduction through the assisted living tax deduction option. Check below!
- Travel to medical-related appointments.
- Insulin and prescription drugs.
- Long-term care, including food, housing, and other costs.
- Nursing services.
- Dental treatments, which include dentures, x-rays, and fillings.
- In-home care products, such as special foods and disposable briefs.
Assisted Living programs are ideal for your parents when they need help with all the daily activities. But assisted living programs can be pretty expensive. So, applying for a tax deduction will be the right thing to do. Make sure you meet all the requirements so that you are eligible for the deduction.