12/12/2023 0 Comments Claiming medical expenses on taxes![]() Many Assisted Living communities have on staff a licensed nurse or social worker who prepares a plan of care, sometimes called a “Wellness Care Plan,” in coordination with the resident’s physician which outlines the specific daily services the resident will receive in the community. In order to qualify for a deduction, personal care services must be provided pursuant to a plan of care prescribed by a licensed health care practitioner.The Assisted Living resident must have been certified within the previous 12 months as “chronically ill” by a licensed health care practitioner. This definition refers to seniors who are unable to perform two or more “Activities of Daily Living” (eating, transferring, bathing, dressing and continence) without assistance, or who need constant supervision because of a “severe cognitive impairment” such as Alzheimer’s disease or related dementias. ![]() Assisted Living residents seeking tax deductions for their services must qualify as “chronically ill”.Qualified long-term care services have been defined as including the type of daily “personal care services” provided to Assisted Living residents, such as help with bathing, dressing, continence care, eating and transferring, as well as “maintenance services”, such as meal preparation and household cleaning. According to the 1996 Health Insurance Portability and Accountability Act (HIPAA), “long-term care services” may be tax deductible as an unreimbursed medical expense on Schedule A. ![]() These are the basic rules concerning the tax deductibility of Assisted Living and Alzheimer’s care expenses: The good news is that some or all of the costs of Assisted Living and Alzheimer’s care may be tax deductible. Over one million seniors live in Assisted Living communities across the United States and many of them pay their monthly fees with their own financial resources. Is Assisted Living a Tax Deductible Expense?
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