Are There Tax Deductible Expenses to Live in Assisted Living?

Yes! – In many cases, payments made to live in an Assisted Living community may be tax deductible. Under the Health Insurance Portability and Accountability Act, the cost of maintenance of personal care services that are required by an individual who is either 1) unable to perform at least two activities of daily living or 2) who suffer from severe cognitive impairment and who require supervision to protect self and others from threats to health and safety, may be tax deductible if such services are provided pursuant to a plan of care prescribed by a licensed health care practitioner. You may be required to obtain a letter from a physician prescribing such plan of care. In addition your loved one may be required to meet certain other conditions.