Assisted Living Expenses and Their Deductibility As seniors age and their health deteriorates, they often face high costs associated with assisted living facilities. These facilities can be a great way for seniors to receive the care they need and maintain a good quality of life, but the costs can be substantial. Many seniors and their families are curious about whether these expenses are tax deductible. The good news is that some assisted living expenses are tax deductible, but it is important to understand the requirements and restrictions that come with this deduction. Types of Deductible Assisted Living Expenses There are two main types of assisted living expenses that may be deductible on federal income taxes: medical expenses and long-term care expenses. Medical expenses are those that are incurred in connection with the diagnosis, cure, mitigation, treatment, or prevention of disease. Long-term care expenses are those incurred in connection with a condition that requires an individual to receive substantial and ongoing assistance with two or more activities of daily living, such as bathing, dressing, or eating. We hope you feel inspired and ready to take the next step towards your goals. If you're looking for a partner in your journey, we're here for you. Our team is available to talk and offer support, advice, and encouragement. Give us a call.