Assisted Living

Today TaxMama® hears from Hollie in the TaxQuips Forum, with this concern.  “My husband had to go to an assisted living facility (following hospital and skilled nursing stays) and I understand the nursing portion of his assisted living monthly fee is a tax deductible expense. When I asked the administrator of his assisted living facility (run by Americare) what percent of his monthly fee was attributable to nursing, I was told 66%. But she would not give it to me in a simple written statement. She said if the IRS has any questions, have them call her, which I realize is not a reasonable reply. My question is do I have to have a written statement from the facility before I can add this to my medical deductions?”


Dear Hollie,

Mike Reed, our Enrolled Agent in California’s San Jose area has provided an excellent response and resource – from the Elder Law Answers website:

I refer you to this article which explains some of the possible deductions – be aware that if your husband is there primarily for medical care, room & board may also be deductible. I’m really surprised the assisted living facility does not have a form letter ready for you. We do lots of these, and never have a problem getting medical substantiation. Maybe asking someone in admittance or marketing might get you a better answer.

TaxMama adds this tip – To ensure you and your husband don’t lose the deduction, please get a written order/letter/prescription from his physician specifying that he needs to move to a care facility – and why.

Try to get a new letter every year.

And remember, you can find answers to all kinds of questions about medical expenses and other tax and business issues, free. Where? Where else? At

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