Moti Gamburd https://rayasparadise.com//wp-content/uploads/2019/07/RP-LOGO-Horizontal-Name-Only-websitetrans.png Moti Gamburd2012-11-27 04:00:292012-11-27 04:00:29Deducting Medical Expenses to Help Pay for Assisted Living
Paying for assisted living is a significant financial commitment that most seniors and their families must plan for carefully. But good news! Many of the expenses of assisted living residents are tax deductible. Such deductions can help add more flexibility to the budget and free up funds that otherwise would have gone elsewhere. A major way to find tax savings is to deduct your medical expenses. Three conditions need to be satisfied in order to get the greatest possible deduction for assisted living expenses:
- The individual must qualify as being “chronically ill.” The Health Insurance Portability and Accountability Act of 1996 defines this as needing assistance with activities of daily living (bathing, dressing, eating, etc…) or requiring continual supervision at all hours of the day.
- Second, the ratio of the adjusted gross income of the person paying for care to the total amount of medical expenses must be greater than 7.5%.
- Finally, the resident’s care plan must be in accordance with the recommendations of a licensed health care provider (for example, a doctor, nurse, or social worker). Most assisted living facilities will automatically provide this and residents and their families will have official documentation that meets this requirement.