Possible Tax Deductions for Assisted Living When it comes to senior care, assisted living is a popular option for those who need some help with daily activities but don’t require the round-the-clock medical attention of a nursing home. While assisted living can be a costly option, there are some potential tax deductions that can help offset the expense. In this article, we’ll explore the possible tax deductions for assisted living and what you need to know to take advantage of them. Understanding Assisted Living Before we dive into the tax deductions, let’s first define what assisted living is. Assisted living is residential for seniors who need help with daily activities such as bathing, dressing, and medication management, but do not require the 24-hour medical care provided in a nursing home. Assisted living facilities offer a range of services and amenities, including meals, housekeeping, transportation, and social activities. Tax Deductions for Medical Expenses One potential tax deduction for assisted living is medical expenses. If the resident is considered chronically ill, some of the costs associated with assisted living may be tax deductible as medical expenses. According to the IRS, a person is considered chronically ill if they are unable to perform at least two activities (such as bathing, dressing, or eating) without substantial assistance for at least 90 days, or if they require substantial supervision due to cognitive impairment.