The reason the IRS description rule is like it is, is because they are including all kinds of different types of residences and care sites. Some residents in Assisted Living can do all of them or many of them thus their charge is mostly for room and board.Īssisted living cost that are over the flat rate are measured in a scale of ADL needs - going up in cost the more help or assistance which is needed - when full / complete help is needed - they aren't really eligible for "Assisted" Living and have to move to a facility of total care. They are dressing, bathing, toileting, eating, continence, and transferring (getting out of bed, into a car, etc.). The activities of daily living (ADLs) are the essential tasks people must be able to perform to care for themselves every day. What is deductible is any cost over the flat rate that has to do with items of daily living - feed or help with feeding, give or help with bath, change or help with bathroom, etc. That is NOT deductible because there is nothing medically oriented about these types of expenses You have that flat rate that covers room & board - meals, laundry, housekeeping, etc. That last paragraph would seem to indicate that you can't deduct 100% of the assisted living costs, but the percentage of those costs related to the provision of medical care and services would be deductible? If so, can I press the assisted living facility to provide an estimate of what percentage could be claimed for medical expenses? Or is there a commonly used way it goes. You can, however, include in medical expenses the part of the cost that is for medical or nursing care. This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care.ĭon't include the cost of meals and lodging if the reason for being in the home is personal. You can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution, for yourself, your spouse, or your dependents. They referred me to IRS Publication 502 "Medical and Dental Expenses", but it is not clear what qualifies in her situation. My Mom does meet that requirement, and is paying a monthly supplement for an enhanced plan-of-care above the basic monthly cost for the apartment (the basic rent includes meals, cleaning, laundry, 24-hr access to medical staff, prescription management, free transportation to medical offices, etc.). could likely be deductible for tax purposes." When I asked the business director at the assisted living facility, they sent me a 2-page boilerplate document that said "For residents requiring assistance with 2 or more activities of daily living in our Life Guidance Program, 100% of the fees paid. Does anyone have any information on estimating the amount of "medical expenses" one can deduct from income taxes for assisted living costs? All the information online I've seen say something like " part or all of your assisted living costs may qualify for the medical expense tax deduction". The amount of eligible expenses that Jamie can claim was reduced because of the subsidies received.Hi: My Mom moved into an assisted living facility last May. The total of the subsidies received is $8,016.īased on the above statement, Jamie’s eligible attendant care expenses are $5,877. The total of the eligible expenses is $8,893.īased on the above statement, Stephen’s eligible attendant care expenses are $8,893.Įxample 2 – Statement of account for the year 2022 for Jamie Fitzgerald The total of the non-eligible expenses is $16,151. However, you must provide a breakdown of the amounts charged by the nursing home showing the portion of payments that relate to attendant care.įor more information on the disability tax credit and how to claim the disability amount, go to Disability tax credit (DTC).Įxample 1 – Statement of account for the year 2022 for Stephen Harris You can claim the disability amount together with the portion of the nursing home fees that relate only to salaries and wages for attendant care (up to the limit indicated in the chart). If you claim the fees paid to a nursing home for full-time care as a medical expense on line 33099 or 33199 of your tax return (Step 5 – Federal tax), no one (including yourself) can claim the disability amount for the same person. For information on claiming attendant care and the disability amount, see the chart.Ĭalculate your net federal tax by completing Step 5 of your tax return to find out what is more beneficial for you. There are special rules when claiming the disability amount and attendant care as medical expenses. Special rules when claiming the disability amount
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |