Assisted Living and Tax Deductibles: A Comprehensive Guide Assisted living can be an excellent option for seniors who require some assistance with their daily activities. However, the cost of assisted living can be a significant concern for seniors and their families. In this guide, we will explore whether assisted living is tax-deductible and provide you with valuable information on how to make the most of your tax benefits. Understanding Tax Deductibility for Assisted Living The IRS allows taxpayers to deduct certain medical expenses from their income tax returns. However, the rules governing the deductibility of assisted living expenses can be complex and confusing. Here are a few things you need to know: Medical expenses must exceed a certain threshold: To claim a deduction for medical expenses, you must itemize your deductions on your tax return. For example, if your AGI is $50,000, you would need to spend more than $3,750 on medical expenses before you can claim any deductions. Assisted living expenses may be deductible: Assisted living expenses may be deductible if they are considered medical expenses. The IRS considers expenses to be medical if they are primarily for the prevention or alleviation of a physical or mental defect or illness. In some cases, the cost of assisted living may be partially deductible if the resident has a medical condition that requires ongoing care. Some expenses may not be deductible: Not all expenses associated with assisted living are