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posted Jan 30, 2021 4:05:19 PM

I lived in an Oxford House/Halfway House for the year 2020. Does giving this information increase or decrease my refund?

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1 Replies
Level 1
Jan 30, 2021 4:26:54 PM

It depends. Many sober living facilities are purely residential and any therapeutic value, provided by other residents in community, is incidental. In this case living in the house has no impact  to your tax refund. 

If, however, a halfway house is operated as a medical facility and services are provided by a therapist, counselor, or other professional, the expenses related to the therapy are deductible as medical expenses, subject to the limitations, and potentially could increase your refund.