If you’re mother and/or father reside in an assisted living facility and you pay for some or all the rent these costs are tax-deductible.

The IRS allows caregivers to deduct some of your parent’s medical expenses from your taxable income. Your parent(s) may also be able to deduct their portion of the rent. Medical costs, like rent at assisted-living facilities can be expensive. Paying some or all of your parent(s) rent adds up throughout the year! A little tax help can offset the severity of this cost.

Here are the requirements:

Assisted Living or Nursing Home must help with 2 of the 6 activities listed below

  • Daily living (eating, toileting, transferring, bathing, dressing, & continence)
  • A Health-Care Professional must prescribe the medical care/assistance
  • Deductible expenses may be offset by an amount equal to 7.5-10% of your adjusted gross income
  • Common medical expenses, including dental, health insurance premiums, & transportation costs related to medical appointments, are also deductible
  • Additional dependency deduction may apply, if you pay more than 50% of your parent, step-parent or parent in-laws care, & their gross income is below $4,000 per year
  • Consult with a certified public accountant to review all available rules & options

CaregiverUSA partners with Elder Law Attorney’s and Financial Planners. If we can’t help you, we can always direct you to someone who can! Call us at 614-408-9939 or visit http://www.CaregiverUSA.com

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