Can You Claim a Tax Deduction for Assisted Living Expenses? Assisted living expenses can be a significant financial burden for families, but did you know that you may be able to claim a tax deduction for these costs? With the right documentation and knowledge of the tax code, you can reduce your tax liability and receive much-needed financial relief. Who is Eligible for a Tax Deduction for Assisted Living? To claim a tax deduction for assisted living expenses, you must be paying for the care of a qualifying individual. This person must be either yourself, your spouse, or a dependent that you are financially supporting. In addition, the individual must require assistance with two or more activities of daily living, such as dressing, bathing, and eating, or have a cognitive impairment that requires supervision. What Expenses are Eligible for a Tax Deduction? Not all assisted living expenses are eligible for a tax deduction, so it is important to keep detailed records of your spending. Eligible expenses include room and board, medical care, and personal care services provided by the assisted living facility. Examples of medical care include doctor visits, medication, and nursing care. Personal care services include assistance with bathing, dressing, and eating. It is important to note that expenses related to room and board, such as meals and laundry services, are only deductible if they are part of the overall assisted living package and are not separately billed.