Can I deduct expenses for Residential Treatment for one of my dependents?

[Jim2600]

My 16 year old daughter was at a residential treatment center for 10 months of the year.  Insurance covered none of the cost.  Is this deductable?

[WillK · Accepted solution]

Yes, the IRS allows you to deduct those expenses on your tax return as long as you itemize your deductions. Medical expenses are an itemized deduction on Schedule A and are deductible to the extent they exceed 7.5% of your adjusted gross income (AGI). 

Please click here for more information: https://www.irs.gov/taxtopics/tc502.html

[edited 3/9/2020 @6:20pm]

[philadopolis]

Thank you for your answer @WillK. Does the level of care or how the money is used by the facility matter? I followed your link and couldn't find my answer on the IRS website. Our son was in residential treatment, then he was in what is known as intensive outpatient, but the facility still provided room and board. Now he is in a transitional program that is managed by the same facility. He lives in an apartment with other "clients" and is issued an allowance for groceries. Throughout his treatment, we have paid one monthly fee to the treatment center. As far as I know, we have not received any detailed breakdown of how much goes to medical care, how much goes to lodging, how much goes to food, etc.

[ReneeM7122]

The level of care matters but the way the facility uses the money doesn't.  The IRS provides that you can include in medical expenses the cost of meals and lodging at a hospital or similar institution if a principal reason for being there is to receive medical care. 

You may be able to include in medical expenses the cost of lodging not provided in a hospital or similar institution. You can include the cost of such lodging while away from home if all of the following requirements are met.

1. The lodging is primarily for and essential to medical care.

2. The medical care is provided by a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital.

3. The lodging isn't lavish or extravagant under the circumstances.

4. There is no significant element of personal pleasure, recreation, or vacation in the travel away from home.

@philadopolis

The amount you include in medical expenses for lodging can't be more than $50 for each night for each person. You can include lodging for a person traveling with the person receiving the medical care. For example, if a parent is traveling with a sick child, up to $100 per night can be included as a medical expense for lodging. Meals aren't included.

Don't include the cost of lodging while away from home for medical treatment if that treatment isn't received from a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital or if that lodging isn't primarily for or essential to the medical care received.

[philadopolis]

Thank you @ReneeM7122. I downloaded and read Publication 502. I didn't see anything about intervention services. Would the hiring of an interventionist be deductible? 

[PattiF]

Here is a link to an IRS publication that addresses What Medical Expenses are Includible? Pub 502  See the list of what one can include as an expense.

Here is a reference to an early ruling on addiction treatment facility expenses.

The costs incurred in an addiction treatment facility is absolutely a medical expense and as such qualifies as a deduction for those who itemize and whose expenses exceed 7.5 percent of their income.

Reference: Revenue Ruling 73-325,, Internal Revenue Service, (Jan. 1, 1973)

Section 213.–Medical, Dental, Etc., Expenses

26 CFR 1.213-1: Medical, dental, etc., expenses.

Amounts paid by an inpatient for treatment at a therapeutic center for alcoholism, and for meals and lodging furnished as a necessary incident to the treatment, are deductible as medical expenses under section 213 of the Code.