Tax Deductions for Assisted Living Expenses


Caring for loved ones as they age can be a complex and complicated undertaking. The realities of providing care can be challenging; work may not be accommodating, you may need to relocate, and your loved one may be dealing with a degenerative memory loss disease. Putting your loved one in a retirement community might feel out of reach due to the cost of the facilities. 

However, plenty of tax deductions are available for independent living in Orlando, Florida, to help defray the cost. Here is a quick rundown of tax deductions available for assisted living. 

Assisted Living Expenses

The biggest cost of assisted living is the cost of the living space per year. Depending on what state you’re in, the price of living in a one-bedroom apartment in an assisted living community ranges between $99 and $220 per day. This cost adds up to roughly $4,000 per month and $50,000 per year.

What’s Deductible

Luckily, there are several deductible items that you can claim during tax time to help offset this price tag. Some everyday medical expense items include:

  • Prescription costs, including insulin 
  • Health insurance premiums
  • Mental health expenses, including the cost of therapy
  • Dental expenses, including dentures, x-rays, and fillings
  • Costs related to medical needs, including parking fees and money spent on travel for care
  • Nursing services (this can be claimed even if the caretaker isn’t a nurse)
  • Fees to enter into assisted care

There are plenty of other tax deductions available to you if the cost of caring for your loved one is substantial. Consult a tax professional for a personalized list of applicable deductions. 

Requirements for Deductibility

Some deductions may have additional requirements you must fulfill in order to be valid. In these cases, your loved one may need to meet the following criteria:

  • Certification of illness by a doctor, nurse, or other licensed healthcare professional
  • Inability to perform basic daily living tasks alone, such as bathing or dressing
  • Need substantial supervision due to memory loss disease

In addition to these criteria, your loved one must also have a plan of care prescribed to them by a social worker or doctor. Even if your loved one doesn’t meet the definition of “chronic illness,” they may still be able to qualify for certain deductions. Consult with a tax professional for guidance on deductions.

You can also get financial assistance in most states if you have Social Security as long as you meet certain requirements and criteria. Ask a financial advisor about Optional State Supplements and whether you qualify. 

Independent Living in Orlando, Florida

If your loved one is becoming challenging to care for on your own, it may be time to consider looking for independent living facilities in Orlando. Westminster Baldwin Park, and our assisted living division in Winter Park, are committed to helping your loved ones maintain their independence for as long as possible. We offer both memory care in Orlando as well as active lifestyles for our residents.

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