Suppose your loved one shows signs of Alzheimer’s and requires help with daily living activities. Considering the prospect of transitioning to an assisted living community is essential. Caregivers who have a loved one with Alzheimer’s residing in an assisted living community whom they claim as a dependent may qualify for a tax deduction.
A carer may qualify if they provide more than half of their loved one’s financial support for in-home care and housing. The Internal Revenue Service (IRS) offers numerous tax breaks for out-of-pocket medical expenses connected to Alzheimer’s care facilities in Roanoke, TX. This rule applies to families caring for a loved one with Alzheimer’s care at home or to relatives who are receiving Alzheimer’s care in assisted living or another long-term care facility.
Expenses Eligible for Tax Deduction
Individuals with Alzheimer’s who cannot care for themselves may be considered dependents for tax reasons. You may be able to itemize medical expenses your insurance has not yet reimbursed. Deductions on your tax return in association with the medical costs for Alzheimer’s treatment that you may be eligible for include a set of allowable itemized expenses as follows:
- Medical fees from hospitals, doctors, and laboratories
- Personal care services, food, and lodging at an assisted living facility are among the “medical fees” you can charge.
- A licensed healthcare professional must certify in writing that the assisted living resident suffers from “severe cognitive impairment, such as Alzheimer’s disease, dementia, or other irreversible loss of mental capacity that necessitates substantial supervision to protect them from threats to their health and safety.”
- Medical care costs for home health care and visiting nurse agencies
- The cost of prescription medications
- Transportation to doctor appointments
- Handrails and shower grab bars are examples of home modifications
- Items for personal hygiene, such as disposable adult innerwear
IRS Child and Dependent Care Credit and The AARP Tax-Aide Program
You may also be eligible for the IRS Child and Dependent Care Credit. If you pay someone to care for a loved one with Alzheimer’s while you work or search for employment, the IRS “Child and Dependent Care Credit” may apply. Depending on your adjusted gross income, you may be qualified for a credit of up to 35% of qualifying expenses.
The AARP Tax-Aide Program provides low to middle-income taxpayers free, individualized tax preparation (for both state and federal tax returns). These programs are available in nearly 5,000 locations across the country.
Many Memory Care and assisted living community fees include items that count as medical expenses. In some cases, all memory care costs may be tax deductible. Be prepared with the resources for tax planning to assist you in taking advantage of tax breaks for Alzheimer’s care facilities.
Check with your tax adviser to see if your state provides tax credits for families caring for a loved one with Alzheimer’s. Look for more information on the tax deductions accessible for all long-term care settings. There are restrictions and thresholds in force, so consult with your tax advisor or accountant before proceeding.