Memory Care

[meljr7391]

My wife is a patient in a memory care facility.  Services are billed in two parts, room and board and care services.  Are both deductible or just care services?

[xmasbaby0 · Accepted solution]

The care given for medical reasons is deductible as a medical expense.  The nursing home should be able to break down the "room and board" costs and the medical care costs for you---this is routine information they are asked for frequently.

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.)  expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2025—do not include any amounts that were covered by insurance or that are still outstanding.  Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses

2025 STANDARD DEDUCTION AMOUNTS

SINGLE $15,750  (65 or older/legally blind + $2000)

MARRIED FILING SEPARATELY $15,750  (65 or older/legally blind +1600)

MARRIED FILING JOINTLY $31,500  (65 or older/legally blind + $1600)

HEAD OF HOUSEHOLD $23,625 (65 or older/legally blind + $2000)

[Opus 17 · Accepted solution]

There is more here.

@xmasbaby0 

@meljr7391 

In general, it is true that only medical expenses are deductible.  Medical expenses include nursing care, and nursing care does not have to be provided by a nurse but be the kinds of services nurses usually provide, such as assistance with bathing, dressing, taking medications, and so on.  Room, board, laundry services, and so on, are not deductible medical expenses. The facility should provide a breakdown.

However,

The entire cost of assisted living can be a deductible medical expense if the care meets the following three tests:

1. The patient is permanently and totally disabled, or the patient has a cognitive impairment that would make them a danger to themselves or others if left alone.
2. The patient needs assistance with 2 or more activities of daily living (ADLs).  ADLs are bathing, dressing, toileting, managing incontinence, eating, and transferring (getting in and out of bed or a chair).
3. Care is provided according to a written care plan that is developed by a qualified professional and reviewed at least once a year.

Care that might not be fully deductible for 2025, might be deductible for 2026 if you get a written care plan.  It depends on the level of care the patient needs.  (My mom was in assisted living for dementia but could still complete all 6 ADLs on her own, at least most of the time. It depends on the patient.)