Assisted Living facility payments

[jbeth]

Where do we report payments made to an assisted living facility for my mother in law?  She was diagnosed with dementia several years ago and requires assistance with her medications, bathing supervision etc etc.  Last year we reported it under medical expenses (medical facility fees).  But I am not sure if this is the proper place to do it.  Do we have to split what is the medical portion and residential?  If so how do we report it in Turbo Tax? Dementia is considered a chronic illness.  We are providing over 50% of her support as she has no funds left.  We get a bill from the assisted living facility every month and at year end we get a statement outlining what the medical expenses were and the residential portion.  As I understand it we are elegible to claim the "residential" portion as well due to the fact she is chronically ill. 

Feedback welcomed and appreciated.     

[AnnetteB6 · Accepted solution]

As long as your mother-in-law is listed as your dependent on your tax return, you would enter the expenses for the assisted living facility in the Medical Expenses section of your return.  As you go through that section, there is a place to enter medical facility fees.  You could use this section or simply enter your own description and amount at the end of the medical expense screens.  The section is broken up into categories for simplicity, but the total amount is used on your tax return.  

Because of her chronic illness, you are correct that you would include the medical and lodging expenses.  

If you are also receiving payments from a Long Term Care contract, those are reported in a different section of your return.  Since you did not mention it, I am assuming that this is not the case in your situation.  

[Ruby2019]

Do I need some documentation from her doctor?  My Mom is currently in an assistant living facility on the locked memory care unit.  So the $50,000 can be used as a deduction under her medical expense

[DaveF1006]

You do not need to include the documentation with your return but be sure to receive documentation in case if IRS asks you about it later.

[Scott Henkel]

My mother fell twice this year -- first breaking her left pelvis (on May 11, 2022) and later breaking her right pelvis (on June 3, 2022).   She was hospitalized twice and was admitted to a Rehabilitation Hospital twice.    Thereafter, she was admitted to an assisted living facility where she first received temporary "respite care" and then later decided to become a "permanent resident" where she has received ongoing assisted living.

My mother clearly met the IRS' definition of being "chronically ill" as she was unable to perform multiple activities of daily living for more than 90 days.   (We are working with her doctor to get that in writing for our tax papers.)   The good news is that she has now substantially recovered and only needs regular assistance with one daily livings activity (eating) plus occasional other ongoing care; however, she has made the decision to continue to reside in the assisted living facility on an ongoing basis for the support and safety of such a facility.

It is quite clear that the cost of many support activities for my mother are tax deductible (such as medial care, maintenance and personnel care services, meals, and lodging) while she is "chronically ill".   The question, then, relates to when my mother stops being "chronically ill" for tax purposes.    IRS Publication 502 states that "an individual is chronically ill, if, within the previous 12 months, a licensed health care practitioner has certified that ... he or she is unable to perform at least two activities of daily living for at least 90 days".   Does this imply that she will be "chronically ill" for tax purposes for 12 months starting when she first fell or does the tax deduction end once she able to perform activities of daily living?

My mother first fell on May 11, 2022.   She was unable to perform multiple activities of daily living without substantial assistance starting on May 11, 2022 until sometime in October, 2022.   The healthcare professionals at her assisted living facility facility agreed that she could move from "level 1 assisted living" to "ala-carte (as needed) assisted living" on November 1, 2022.   (Note:  They had not agreed to such a move in prior months as they felt that she needed ongoing assistance for her health and safety.)  Would expenses such as maintenance and personal care, meals, and lodging be deductible as medical expenses from November 1, 2022 through May 11, 2023 (the full 12 months) or does the ability to deduct those expenses end once she was able to perform all but one activity of daily living?  Put simply, does she remain "chronically ill" for tax purposes for the full twelve months following the point in time when she was unable to perform two activities of daily living?