Is Senior Care Tax Deductible

Is Senior Care Tax Deductible?

Many people aren’t aware of the tax benefits of senior care or who qualifies for deductions. Let’s take a look at these areas and others related to senior care and taxes.

What senior care is deductible?

First off, most senior care is tax deductible. According to the 1996 Health Insurance Portability and Accountability Act (HIPAA), “long-term care services,” “personal care services” and “maintenance services” related to senior care residents’ are deductible as unreimbursed medical expenses. This includes everything from help with daily tasks to meal preparations, housing and cleaning. Eligibility requirements and who qualifies for the deductible is another story, however.

Who is eligible for deductions?

There are a variety of factors that may determine whether the senior care is tax deductible or not, but there are generally three scenarios people fall into when it comes to deduction eligibility. These three scenarios include:

  • The senior is your dependent: If you claim the senior as a dependent (and their taxable income is less than $3,800), you qualify to receive any senior care tax deductions. If the senior is above the income limit, however, you can’t claim anything.
  • Caring for the senior living with you affects work/school: The above being said, you can claim up to $3,000 of your expenses (usually less) if the senior is unable to care for themselves and caring for them would impact work or school.
  • Seniors with large medical expenses: Finally, you can also deduct a wide range of medical expenses that aren’t reimbursed by insurance. This includes senior care facility medical services, though any medical expenses only start deducting once they surpass 10 percent of your adjusted gross income (AGI).

As for how to file, these expenses are usually on Schedule A of Form 1040. Itemized deductions are required and Form 2441 is also required for the dependent care credit.

Choosing the best community for care

Just because most senior care is tax deductible doesn’t mean all senior care is the same. There are advantages and disadvantages to most options, but one of the best to consider is a Life Plan Community. Places like The Glen are designed with resident comfort in mind. As such, amenities, apartment features and staff are carefully selected to ensure the most appropriate care possible. 

If you’re interested in learning more about the care offered at The Glen, contact us today to review your options.