Senior Living Financial Planning

Atria Tax Benefits

Tax deductions can be a useful way to balance the cost of senior living. You may be eligible for certain deductions on your federal tax return, depending on the type of services and the level of care you require.

The IRS allows deductions for the cost of housing and meals for older people receiving long-term care in a home or community due to chronic illness or the inability to live alone. Assisted living residents may qualify for this deduction if a physician certifies that they have been unable to perform at least two daily activities (such as eating, bathing or dressing) without assistance for at least 90 days. The same deduction can apply to people who require substantial supervision because of a cognitive impairment, such as Alzheimer's disease.

An adult child paying for his or her parent's care may also qualify for the tax deduction, if the adult child can claim the parent as a dependent.

While we're happy to provide this introduction to the possible tax benefits of senior living, we encourage you to consult a tax advisor for further information.