Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

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Pioneer
Posts: 1
Registered: ‎12-30-2016

Assisted living expenses for person with Alzheimer's

Hi. If a person has Alzheimers and is living in a Assisted Living facility, what portions are they allowed to claim for medical expenses ? They pay for the room, they also pay additional amounts for the following:

1 - daily care that is identified  as an add-on due to the level of care they require

2 - Incontinence fees

3 - disbursement of medicines  

Tax Pro
Posts: 5,063
Registered: ‎02-23-2016

Re: Assisted living expenses for person with Alzheimer's

Hi SWOOD,

 

Welcome to the community.

 

So the medically necessary expenses & fees such as daily care and medications are deductible without question.

 

We do need to look a little more closely at the cost of this person being in the assisted living facility though because that has special rules.  Generally the cost of living in such a facility is not deductible.  However, if the patient is chronically ill and certain requirements are met then the cost of living in the facility (room & board) is considered medically necessary and can be deducted under the medical expenses deduction on Schedule A.

 

The requirements for deducting the cost of living in an assisted care facility include that (1) the person is chronically ill, and (2) care is provided based on a plan put together by a licensed health care provider.  Chronically ill is defined for this purpose as:

 

"A doctor or nurse has certified that the resident either (1) cannot perform at least two activities of daily living, such as eating, toileting, transferring, bath, dressing, or continence; or (2) requires supervision due to a cognitive impairment (such as Alzheimer's disease or another form of dementia)."

 

So an Alzheimer's patient no doubt qualifies to dedut his or her cost of living the facility.  Therefore, as long as all of the above requirments are met all of this person's expenses that you asked about are deductible.

 

I hope this helps you out.

 

Louis,

Senior Tax Advisor (Tampa, FL)

Pioneer
Posts: 1
Registered: ‎04-01-2017

Re: Assisted living expenses for person with Alzheimer's

 What line under Medical and Dental Expenses do you deduct the assisted living expense for an Alzheimer's patient?