If you or your loved one lives in an assisted living community, part or all of your assisted living costs may qualify for the medical expense tax deduction. According to the IRS, any qualifying medical expenses that make up more than 7.5% of an individual’s adjusted gross income can be deducted from taxes.

Who owns the most assisted living facilities?

Brookdale is ranked as the largest assisted living provider, with 34,572 units, and the largest memory care provider, with 9,968 units. Holiday Retirement is the largest independent living provider, with 31,272 units. Life Care Services was named the largest CCRC operator, with 97 communities.

Who pays for assisted living facility?

Medicaid and Assisted Living As of 2021, Medicaid pays for some of the cost of assisted living in 30+ states, as well as the District of Columbia. Financial assistance from Medicaid for assisted living comes through several different types of Medicaid programs.

Is assisted living room and board tax deductible?

Generally, only the medical component of assisted living costs is deductible and ordinary living costs like room and board are not. Residents who are not chronically ill may still deduct the portion of their expenses that are attributable to medical care, including entrance or initiation fees.

Is assisted living same as nursing home?

Overall, the main difference between nursing home care and assisted living is that nursing homes provide medical and personal care in a clinical setting, while assisted living primarily provides personal care in a home-like, social setting.

What Does Medicare pay for assisted living?

Medicare does not cover any cost of assisted living. It will pay for most medical costs incurred while the senior is in assisted living, but will pay nothing toward custodial care (personal care) or the room and board cost of assisted living.