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Is Assisted Living Tax Deductible?

Is Assisted Living Tax Deductible?

Assisted living is different from nursing homes or skilled nursing care. This type of care for seniors is not free, and some insurance companies may not cover it. So, you may be asking yourself this time of year if assisted living is tax deductible. The short answer is yes. If you or a family member live in this type of facility, some of the costs can be tax deductible. There are restrictions that will depend on the circumstances of course. The full disclaimer is that you should consult a tax professional such as your accountant for advice on your specific situation. 


In order for assisted living to be considered tax deductible there are a few requirements. The main requirement is being diagnosed as “chronically ill.” In order to understand what this means for tax purposes, it can be broken down into two basic parts. 

  1. Cognitive Impairment
  2. Need for assistance with two or more ADL’s

You do not have to have both, but one of the above listed plus a care plan is required. A plan of care must be customized for the individual. It should be written and signed by a medical professional such as a doctor, nurse, or social worker. In order to qualify for the deduction, there must be some proof of a plan and that care is being provided accordingly. In the medical field, this is often referred to as a needs assessment and should be on file for every resident. 

What expense can be deducted? 

Just because you meet the criteria, does not mean you can deduct the entire monthly or annual expenses of assisted living. 

Common medical expenses that can be a tax write off:

  • Prescriptions such as insulin
  • Health insurance premiums
  • Nursing services (not necessarily provided by a nurse)

You can find a more comprehensive list on the IRS website.

Assistance for Seniors

If you are looking into the deductibility of assisted living for your taxes this year, chances are you are trying to ease some of the financial burden this kind of care can leave you or your family with. Claiming a tax deduction is a great way to benefit financially, but there are other ways you can get the most out of your care. Elderly assistance programs differ by area. Check with your local senior center for help with things like meals, transportation, etc. Most places have an “area agency on aging” that can provide you with local resources as well. As for financial assistance, your local health and welfare office is the place to go.  

If it is time for you or a family member to consider assisted living, do not delay. Our caring team provides the highest level of excellent care for our residents in Idaho assisted living and Utah assisted living. We have a variety of room options to fit your budget. If you are interested in deducting expenses, we can assure you that each resident will have a needs assessment and care plan documented to make the process go as smoothly as possible. 

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