Assisted living costs can be expensive but they are tax deductible for many seniors

Assisted living facilities for elderly persons (“ALFs”) can be very expensive, but for many taxpayers, the cost can be fully deducted on federal income tax returns as a medical expense if the ALF resident’s health problems rise to a certain level and if the appropriate documentation is obtained.

Taxpayers over 65 or who have a spouse over 65 can deduct the portion of their medical and dental expenses that exceed 7.5% of their adjusted gross income. Once one or both spouses move to an assisted living facility, most taxpayers will easily exceed this threshold.



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