Are Assisted Living Facilities charges tax deductible?

The deductibility of assisted living facility charges for income tax purposes depends on several factors, including the purpose of the charges and the taxpayer's circumstances. Here are the general rules:

1. Medical Care Expenses: Assisted living facility charges that are primarily for medical care may be deductible as medical expenses if they meet certain conditions. These conditions include being reasonable and necessary for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting a structure or function of the body. Medical care expenses can include:

- Room and board charges for a facility that primarily provides medical care, such as a nursing home or continuing care retirement community (CCRC).

- Assisted living services such as assistance with activities of daily living (ADLs), such as bathing, dressing, and eating.

- Costs of qualified long-term care services, including those provided in an assisted living facility.

2. Long-Term Care Insurance: If you have long-term care insurance, the premiums you pay may be deductible as medical expenses, subject to certain limits. Long-term care insurance policies typically cover the costs of assisted living facility care, among other long-term care services.

3. Non-Medical Expenses: Charges that are not primarily for medical care, such as those for basic living expenses or social and recreational activities in an assisted living facility, are generally not deductible as medical expenses.

It's important to note that the deductibility of assisted living facility charges is subject to certain limitations and may vary based on the individual's specific circumstances and tax laws. It is advisable to consult with a tax professional to determine the deductibility of your specific assisted living facility charges.