Are you planning to move to independent living? The transition can be expensive. Is independent living tax deductible? Unfortunately, senior independent living services are not deductible. However, certain medical expenses are qualified for tax deductions. Understanding these deductions could help make the transition to independent living more affordable.
Read on to learn more about senior independent living and tax deductions.
Is Senior Independent Living Tax Deductible?
What is Independent Living?
Independent living is a housing arrangement for seniors over 55. Housing varies from single detached houses and townhouses to apartments and suites. Independent living communities may have swimming pools, fitness centers, golf courses, and clubs. Additionally, they typically offer services like laundry, housekeeping, daily meals, etc.
However, it does not offer the level of care you might expect from other senior living options. Independent living is for seniors who can manage their daily lives without assistance.
Senior Living and Tax Deductions
Since the target market for independent living communities is active seniors, they usually don’t offer medical care services. However, seniors can be eligible for tax deductions if they receive in-house medical care from home healthcare providers. Let’s say you require in-home care after surgery. Something like in-home physical therapy could be eligible for tax deductions. According to the IRS, these medical expenses qualify for tax deductions.
Qualifying Medical Expenses
Here are some of the medical expenses you can claim for deduction:
- Prescription drugs
- Medical equipment
- Annual medical and dental
- Diagnostic services
- Eye exam, eyeglasses, and contact lenses
- Hearing aids
- Nursing services
- Artificial limb or teeth
Remember that this list is not exhaustive. If you want to ensure that a certain expense is covered for the medical expense deduction, consult a tax advisor.
Computing the Deductible Amount
The deductible amount will vary depending on your adjusted gross income (AGI). Remember that you’re only eligible for tax deductions for medical and healthcare expenses over 7.5% of your AGI.
For example, if you have an AGI of $50,000, you must spend more than $3,750 on medical expenses to claim a deduction.
While independent living services are not tax deductible, it’s essential to understand the tax deductions that may be available. This information can help you plan for retirement and make sound decisions.
Spring House Senior Living
At Spring House, we understand that finding the right senior living community can be challenging. That’s why we offer a variety of amenities and services to cater to different needs and preferences.
Schedule a tour of one of our communities in Cartersville, Lithia Springs, or Louisville today. You’ll see why Spring House is the ideal choice for senior living.
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