Senior Care Expenses are Tax Deductible

Question:  My Mother recently moved into an assisted living facility. It is pricey; but they provide her good care.  Can deduct the cost of her assisted living facility, on her taxes?

Answer:  Not all costs are tax deductible, but some are, if your Mother itemizes her deductions.  Such expenses include:

• The portion of her monthly assisted living bill attributable to assistance (vs. room & meals)
• Out of pocket medical expenses, not reimbursed by insurance;
• Preventative care;
• Surgical and other medical treatments;
• Vision and Dental care;

She can’t deduct 100% of the expenses, but the amount of her 2017 expenses which exceed 7.5% of her Adjusted Gross Income (AGI).  For example, if her AGI was $30,000, 7.5% = $4,500.  So, the amount of her expenses over $4,500 are deductible. 
 
If you paid for her care out of pocket, you may be able to deduct these costs.  The calculations are similar to the example above. You must:

• Have paid at least half of her living expenses, and;
• Can claim your Mother as a dependent.

Of course, consult a tax professional for greater detail. 

Attorney James Haroutunian practices real estate law, estate planning and probate at 630 Boston Road, Billerica, MA. He gladly invites questions at james@hlawoffice.com or by phone at 978-671-0711.  His website blog is found at www.hlawoffice.com.  This column is published for entertainment purposes only and not to be relied on as legal advice, in any manner.