I lived in a sober living group home for people recovering from substance addiction for most of 2023. Does the IRS consider this being in a halfway house?

[ewaters3493]

I was required to pay rent, attend recovery meetings, pass drug tests, and had just come out of rehab. Can I deduct this in any way? Does this count as a "halfway" house? Thanks in advance.

[AmyC]

Yes, you were in a recovery residence and qualify to claim the following expenses as a medical deduction. From The Ascension House:

What Sober Living Expenses Can Be Tax Deductible

Sober living expenses can be a significant financial burden for individuals in recovery from addiction. However, some good news for taxpayers is that some sober living expenses may be tax deductible. Here are some of the expenses that may be eligible for tax deductions:

• Rent: The cost of rent paid to stay at a sober living home may be tax deductible if the home is considered a “recovery residence” by the IRS.
• Utilities: The cost of utilities, such as electricity, water, and gas, may also be eligible for tax deductions.
• Food: The cost of food purchased while staying at a sober living home may be tax deductible if it is considered a medical expense.
• Transportation: Transportation expenses to and from support group meetings or therapy sessions may be tax deductible if considered medical expenses.
• Program Fees: Fees paid to attend a recovery program, such as counseling or therapy sessions, may be tax deductible if considered medical expenses.
• Medical Expenses: The cost of medical treatment related to addiction, such as detox or medication, may also be eligible for tax deductions

Criteria For Tax Deductibility of Sober Living Expenses

While it’s possible to claim a tax deduction for sober living expenses, not all expenses will be eligible. Here are some of the criteria that must be met for sober living expenses to be tax deductible:

• Medical Necessity: The expense must be considered medically necessary and related to addiction treatment.
• Itemized Deductions: Taxpayers must itemize their deductions on their tax return to claim a tax deduction for sober living expenses.
• Eligibility For Medical Expense Deduction: Taxpayers must have enough medical expenses to meet the IRS threshold for medical expense deductions, which is 7.5% of their adjusted gross income for 2021 and 2022 (after which it will increase to 10%).
• Income Limitations: Taxpayers must meet certain income limitations to be eligible for medical expense deductions.
• Proper Documentation: Taxpayers must provide proper documentation of their sober living expenses, including receipts, bills, and proof of payment.
• Qualified Residence: The sober living home must meet specific requirements to be considered a “recovery residence” by the IRS.
• Length Of Stay: Taxpayers must stay in the sober living home for a minimum period to be eligible for tax deductions.
• Geographic Location: Taxpayers must live in a geographic area where sober living homes are not readily available and must prove that the home was necessary for their treatment.