QUALIFIED DEPENDENT EXPENSES

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MY WIFE NEEDS HELP DRESSING, GETTING TO BED, TOILETING AND OTHER ACTIVITIES OF DAILY LIFE.  IS HER PORTION OF THE ASSISTED LIVING COST DEDUCTIBLE?

[Opus 17]

The general rule is that you can deduct medical costs, but not costs for room and board, laundry service, and so on.  The facility should be able to provide a breakdown of what portion of the fees counts as medical costs.

You can deduct the entire cost of assisted living if the person meets 3 tests.

1. They are permanently disabled, or have a cognitive impairment that means they would be a danger to themselves or others if left alone.

2. They require assistance with 2 or more activities of daily living (ADLs are eating, dressing, transferring, bathing, toileting, and managing incontinence.)

3. Their care is provided according to a written care plan that is written by a qualified medical professional and is reviewed and updated at least once a year.

If you don't have a written care plan, then only the medical costs are deductible.  If you get a written care plan, you can deduct all the assisted living costs going forward.