The aging population is a problem that plagues many countries and societies around the world. Just in the United States alone, there are more than a million seniors who choose to live in assisted living communities. These facilities are places where seniors can go to interact and socialize with their peers who are of similar age and who might share common interests. This is beneficial for the overall health of seniors because it helps to keep them active and social, which is much better than being lonely in their own homes. If you have a friend or a family member who stays in one of these communities, then you would be happy to know that a portion or all the costs of assisted living might be tax deductible.
Being ‘Chronically Ill’
If a senior who stays in an assisted living community wants to get a tax deduction for the services that they pay for every month, they need to qualify as ‘chronically ill’. They can only qualify as chronically ill if they are physically unable to perform two or more daily activities. These activities can include dressing themselves and bathing on their own. Being chronically ill also can refer to seniors who might suffer from illnesses that impair their cognitive functions. Examples of such illnesses include Alzheimer’s disease and general dementia. The resident at the assisted living community must also have been certified ‘chronically ill’ within the previous tax year by a professional and licensed healthcare expert.
Itemization of Deductions
If a resident wants to get as much tax deductions as possible, the taxpayer must be able to itemize their deductions. Furthermore, these services that and expenses that are unreimbursed must be more than 7.5% of their adjusted gross income. It is also crucial to understand that a taxpayer can deduct the medical care expenses of their parent if they contribute to more than half of their parent’s support expenses.
Official Healthcare Plan
In order to qualify for a tax deductible. The resident must be under certain personal care services that are provided by the community, according to a healthcare plan that is structured or created by a licensed medical professional. You will find that most of these assisted living facilities will have staff members who are licensed to come up with such plans that might be referred to as a ‘wellness care plan’. These plans are often created in conjunction with the resident’s own physician that will detail the type of daily services that the resident needs in the community.
Difference in Amount Deducted
Depending on the resident’s ability to qualify for a tax deduction as well as their adjusted gross income, the amount that can be deducted might differ from person to person. For some residents, they might enjoy a tax deduction of the entire monthly fee, while some might only get a deduction for the expenses that some specific personal care services incur. Regardless of the situation, assisted living facilities are a great way for seniors to live without the stress of having to clean up after themselves, or constantly looking to hire people to help them with their daily activities.