Can turbotax deluxe desktop 2025 handle ccrc prepaid medical deductions?

[wpollans]

Can turbotax deluxe desktop 2025 handle ccrc prepaid medical deductions?

[Mike9241]

it doesn't do calculations of medical expenses vs personal. Rather, you generally get a letter or other notification as to the amount of payments for the year that constitute deductible medical expenses. Once the amount is know it is handled just like any other medical expense.

Residents of Continuing Care Retirement Communities (CCRCs) may be eligible for tax deductions on prepaid medical expenses. This typically includes a portion of the entrance fee and monthly fees that can be classified as prepaid medical expenses under IRS guidelines.

Eligibility for Deductions

Only residents of CCRCs that offer a continuum of care can qualify for these deductions. If the community does not provide guaranteed health care services, the fees may not be deductible
.
A nonrefundable portion of the entrance fee is often considered a prepaid medical expense, while refundable portions may only qualify for deductions if they are nonrefundable
.
Claiming the Deductions

Residents should report these deductions under medical expenses when filing taxes
.
It is advisable to keep detailed records of all fees paid and consult with a tax professional for personalized advice
.

[LindaS5247]

Yes, the TurboTax Deluxe Desktop 2025 can handle CCRC (Continuing Care Retirement Community) prepaid medical deductions. These will be entered under the "Medical Expenses" section of Deductions & Credits in your TurboTax program. Keep in mind that you must itemize deductions on Schedule A, and these expenses are only deductible to the extent they exceed 7.5% of your 2025 Adjusted Gross Income.

In general. as Mike9241 mentions above a percentage of your CRC payments are deductible as medical expenses for both the entrance fee and monthly fees, provided they are non-refundable and used for pre-paid medical expenses.  The CCRCs usually will give a statement regarding the amount of the specific deductible percentage.

Often the CCRC calculates the percentage of your fees that will qualify as medical expenses and provides this to the residents. This is usually done using a Form  1099-MISC, which will show the amount (%) that is deductible.

To get to the medical expenses  section of TurboTax you can:

1. Click on Search at the top right of your TurboTax screen
2. Type medical expenses in your search box
3. Click on the link Jump to medical expenses 
4. Follow your TurboTax screens to enter your CCRC payments

Click here for Can I deduct nursing home costs?

Click here for What Medical Expenses are Tax Deductible?

Click here for What are Tax-Deductible Medical Expenses?

Please return to Community if you have any additional information or questions and we would be happy to help.