Wednesday, September 22, 2010

Deduct Assisted Living Expenses







Deduct Assisted Living Expenses


In order to include the complete cost of assisted living expenses as a federal income tax deduction for medical expenses, certain criteria must be met. The patient must be chronically ill and prescribed to the care by a licensed health care provider. Health care providers must certify that patients are chronically ill if they are unable to perform at least two activities of daily living without help from another individual for at least 90 days, or cognitively impaired to the extent that constant supervision is required. If these conditions are not met, then the patient can deduct the nursing expenses but not room, board and personal services.


Instructions


1. Obtain the care giver's written opinion of the illness before being admitted into the assisted care facility.


2. Obtain a written plan of care from a licensed health care provider.


3. Deduct 100 percent of costs for the assisted living under Section 7702A on Schedule A of Form 1040 if criteria is met. This will include room and board expenses.


4. Deduct nursing expenses for assisted living care under Section 213 on Schedule A of Form 1040 if criteria are not met. Nursing expenses are for the care of the patient, including bathing and grooming. The assisted care facility should provide the estimate of nursing services and it should be attached to Section A.

Tags: 1040 criteria, assisted care, assisted care facility, care facility, care provider