In order to qualify for a deduction, personal care services must be provided pursuant to a plan of care prescribed by a licensed health care practitioner.The Assisted Living resident must have been certified within the previous 12 months as “chronically ill” by a licensed health care practitioner. This definition refers to seniors who are unable to perform two or more “Activities of Daily Living” (eating, transferring, bathing, dressing and continence) without assistance, or who need constant supervision because of a “severe cognitive impairment” such as Alzheimer’s disease or related dementias. Assisted Living residents seeking tax deductions for their services must qualify as “chronically ill”.Qualified long-term care services have been defined as including the type of daily “personal care services” provided to Assisted Living residents, such as help with bathing, dressing, continence care, eating and transferring, as well as “maintenance services”, such as meal preparation and household cleaning. According to the 1996 Health Insurance Portability and Accountability Act (HIPAA), “long-term care services” may be tax deductible as an unreimbursed medical expense on Schedule A.These are the basic rules concerning the tax deductibility of Assisted Living and Alzheimer’s care expenses: The good news is that some or all of the costs of Assisted Living and Alzheimer’s care may be tax deductible. Over one million seniors live in Assisted Living communities across the United States and many of them pay their monthly fees with their own financial resources. You may also refer to Publication 501, Dependents, Standard Deduction, and Filing Information.Is Assisted Living a Tax Deductible Expense? For more information on the difference between itemized deductions and the standard deduction, refer to Publication 17, Your Federal Income Tax for Individuals or the Instructions for Form 1040 (and Form 1040-SR). See the Instructions for Schedule A (Form 1040) to determine what limitations apply. Itemized deductions, subject to certain dollar limitations, include amounts you paid, during the taxable year, for state and local income or sales taxes, real property taxes, personal property taxes, mortgage interest, disaster losses, gifts to charities, and part of the amount you paid for medical and dental expenses. You may also want to itemize deductions if your standard deduction is limited because another taxpayer claims you as a dependent. You should itemize deductions on Schedule A (Form 1040), Itemized Deductions if the total amount of your allowable itemized deductions is greater than your standard deduction or if you must itemize deductions because you can't use the standard deduction. You are filing as an estate or trust, common trust fund, or partnership.For additional information, refer to Publication 519, U.S. residents for tax purposes can take the standard deduction. citizen or resident alien at the end of the year and who choose to be treated as U.S. However, nonresident aliens who are married to a U.S.
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