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Deductions for moving expenses

Can I claim any deductions for moving expenses when I am moving into a LifeCare Facility? (Friendship Village, Kalamazoo, MI)

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dclick
Expert Alumni

Deductions for moving expenses

Thanks for reaching out today with this excellent question.

If you or your loved one lives in an assisted living community, part or all of your assisted living costs may qualify for the medical expense tax deduction. According to the IRS, any qualifying medical expenses that make up more than 7.5% of an individual's adjusted gross income can be deducted from taxes.

The IRS has a publication on the various items that qualify as well:

https://www.irs.gov/publications/p502 


Also, there is an expense eligibility checker:

https://www.irs.gov/help/ita/can-i-deduct-my-medical-and-dental-expenses 

I hope this helps, as these can be quite major expenses and can result in very high deductions, as long as they exceed 7.5% of your Adjusted Gross Income. I'd recommend keeping good records of the amounts paid to report on your 2021 taxes.

Beyond that, the moving expenses themselves would not be deductible:

Thanks for reaching out to us today. Hope your move goes smoothly!

The Tax Cuts and Jobs Act of 2018 revamped how moving expenses were treated and made them generally not deductible (with the exception of military related moves):

https://turbotax.intuit.com/tax-tips/jobs-and-career/guide-to-irs-form-3903-moving-expenses/L6CwmGm3...

Some states still allow the deduction, but Michigan is not one of them unfortunately.

I hope this helped, and thanks again for reaching out!

-Dennis

 

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