Tax deductions can be a useful way to balance the cost of senior living. You may be eligible for certain deductions on your federal tax return, depending on the type of services and the level of care you require.
The IRS allows deductions for the cost of housing and meals for Seniors residing in a senior living community. Assisted living residents may qualify for this deduction if a physician certifies that they have been unable to perform at least two daily activities (such as eating, bathing or dressing) without assistance for at least 90 days. The same deduction can apply to people who require substantial supervision because of a cognitive impairment.
An adult child paying for his or her parent’s care may also qualify for the tax deduction, if the adult child can claim the parent as a dependent.
As always you will need to consult with your tax advisor.