MEMORY CARE DEDUCTIONS

[wjellery]

Do Housing, Food, Meds (Rx), Nursing care, costs for this deduction need to be segmented or itemized - Memory Care facility just issues a single monthly bill -

[KanM361]

Hello wjellery,

Can you please explain what are these expenses for? Are these expenses incurred for the work you are doing as a self employed/independent contractor, or are these medical expenses or any other expenses? Please clarify.

[wjellery]

Family member is in a Memory Care (Assit Living) facility in FL. Monthly charges for being in this facility is $5,000/mo or $60K annual.

These expenses will definitely exceed the 7.5% threshold and will also exceed the Standard Deduction (Single unmarried) as well.

So I am asking about what does the IRS filing expect in regards to segmenting or itemizing these expenses or just the $60k minus the 7.5%?

[KanM361]

If you are claiming your family members in assisted living as your dependents, for 2021, costs exceeding 7.5% of adjusted gross income (AGI) are deductible if they're itemized. So you need to itemize and these expenses should exceed 7.5% of your adjusted gross income.