Can I deduct nursing home costs?

Like other medical expenses, nursing home and assisted living costs are only deductible if you itemize your deductions instead of taking the Standard Deduction. You can deduct any costs that exceed 7.5% of your adjusted gross income (AGI).

If you pay these expenses for a family member, they’re only deductible if you claim them as a dependent.

If other people help you pay for this family member’s expenses, you can form a mutual support group.

• Each member must pay at least 10% of the cost of care.
• No single person can pay more than 50% of the cost of care.
• Each member must sign a Multiple Support Declaration and file Form 2120.
• Each year, a different member claims the family member as a dependent.

You might also want to deduct your long-term care insurance costs. Here’s how.