FINANCIAL ASSISTANCE FOR ASSISTED LIVING?
Veterans or their surviving spouses may qualify for financial assistance through the A&A
(VA Aid & Attendance) benefit. Many Long-Term Care
insurance policies include benefits payable directly to the assisted living facility. Most residents pay with a combination of their social security benefit, savings, investment income, annuities, or financial support from family. Our experienced staff would be happy to answer any questions regarding finances and help explore your options further.
Is Assisted Living A Tax Deductible Expense?
Good news! Some or all of the costs of Assisted Living and Alzheimer’s care may be tax deductible.
- Residents must qualify (as prescribed by a licensed healthcare provider) as not being able to perform two or more of the ADL’s (Activities of Daily Living- eating, bathing, dressing, transferring & toileting) without assistance….or must qualify as needing continuous supervision in the Dementia/Alzheimer’s community.
- Long-term care services and other medical expenses must exceed 7.5% of the tax payers adjusted gross income, in some cases a taxpayer can deduct the medical care expenses of his or her parent if the taxpayer provides more than 50% of the parent’s support costs.
- Some assisted living residents may be able to deduct their entire monthly fee, while others may only be able to deduct the specific personalized health care related services.
- Other health related expenses to consider include: Medical fees from doctors, laboratories, home health care and hospitals, prescription drugs, transportation to/from medical care, residential modifications such as grab bars and handrails, personal items such as disposable briefs and incontinence items.
- If you pay hourly caregiver services for a loved one with dementia, you may be able to claim the "Child and Dependent Care Credit" on your federal income tax return. If eligible, you would be allowed a credit up to 35 percent of your qualifying expenses (depending upon your AGI).
Assisted Living residents and their adult children should CONSULT A TAX ADVISOR AND/OR A LONG TERM CARE ATTORNEY.