Yes, if you are itemizing your return you can deduct some, most or all of the assisted living costs.
How much depends on why you are there. If you are itemizing your return you can deduct the medical part of the assisted living costs. You can deduct the costs of room and board and medical treatment if you are there for medical reasons such as dementia or physical rehabilitation.
If your primary reason for being there is for convenience and not medical purposes, then you cannot include any part of the costs that are not directly medical related. You would still be able to deduct the medical components such as medications.
Be aware that medical expenses are only deductible for the amount that is over 7.5% of your AGI and that in order to benefit from this deduction your total itemized expenses would need to be greater than your standard deduction.
Itemized expenses include mortgage interest, gambling losses up to winnings, charitable contributions, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss.
The 2024 Standard Deductions are as follows:
- Married Filing Joint (MFJ) $29,200
- Married Filing Separate (MFS) $14,600
- Head of Household (HOH) $21,900
- Single $14,600
Blind or over 65 and MFJ or MFS add $1,550
Single or HOH if blind or over 65 add $1,950
Standard versus Itemized Deduction
Publication 502 (2024), Medical and Dental Expenses
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