As senior living costs continue to rise in Washington State—especially in areas such as Newcastle, Bellevue, Renton, Kirkland, Issaquah, Redmond, and Mercer Island—many families find themselves wondering whether any portion of these expenses can be deducted on their taxes. With monthly costs for assisted living, memory care, skilled nursing, and in-home support steadily increasing, understanding IRS rules can make a meaningful difference in financial planning. Families often search questions like are assisted living expenses tax deductible in 2020, are senior living expenses deductible, and can you deduct assisted living expenses on your taxes hoping to find clear answers.
Unfortunately, tax rules can feel overwhelming, especially when combined with the emotional responsibility of caring for an aging parent. Determining what qualifies as a medical expense, who can claim the deduction, and what kind of living arrangement counts under IRS guidelines requires careful attention to rules that often change from year to year. Many families in Newcastle and the surrounding King County communities turn to A1 Senior Care Advisors for guidance—not only on senior care placement but also on understanding the financial implications connected to care options.
This guide breaks down IRS standards surrounding senior living deductions, helping you determine whether expenses such as assisted living, memory care, or home health support are deductible. It also clarifies when is independent living tax deductible, what qualifies under assisted living medical deduction IRS rules, and how the IRS assisted living deduction 2020 applies to families today.
Tax Deductible Senior Living Expenses
Senior living is expensive, so anyone who is paying for them wants to know if there’s a way to deduct those expenses from their taxes. The good news is that some senior living expenses are deductible, as well as medical expenses within parameters set forth by the IRS. The following are the details, so you can figure out if you’ll be able to deduct your senior living expenses.
According to the IRS, nursing home expenses are deductible because they are considered medical expenses. Home health aide expenses may also be deducted if there is a medical necessity, and only the following services can be deducted:
Diagnostic
Preventative
Therapeutic
Curing
Treating
Mitigating
Rehabilitative
Maintenance and Personal Care
These categories reflect the core guidelines used to determine whether are senior living expenses deductible under IRS standards. In many cases, deductible expenses relate directly to medically necessary care—not room and board unless the facility’s primary purpose is health-related.
Medical Criteria Required for Deductible Senior Living Costs
These services are also only able to be deducted if the senior meets the following criteria:
The nursing home is primarily for medical care. If it is for medical care, everything is deductible, including meals and lodging.
If the nursing home is not a necessity for medical care, only the medical portion of the services provided are deductible. In other words, the costs of meals and lodging are not deductible.
The person must be chronically ill. The resident at the assisted living facility must need assistance with at least two activities of daily living: eating, toileting, dressing, or bathing.
A healthcare professional must recommend senior living assistance, indicating there is a medical need.
The resident suffers from severe cognitive impairment, such as dementia or Alzheimer’s disease and requires constant supervision.
A treatment plan must be prescribed for the senior living expenses to be deducted.
These rules outline when can you deduct assisted living expenses on your taxes and when senior living remains a personal expense. This is also why families frequently ask us whether is senior independent living tax deductible—in most cases the answer is no unless the resident has a qualifying medical need and a care plan in place.
Tax Deductions for Adult Children Paying for Care
Adult children who are paying half or the full amount of senior living expenses may be able to claim them on their taxes, but the older parent must be considered a dependent. The older parent also must not have a gross income that exceeds $4,150.
This dependency rule often trips up families who are trying to help pay for the cost of assisted living, memory care, or nursing home support. Even if you cover the majority of the cost, the IRS requires strict proof that your parent qualifies as a dependent before allowing you to claim deductions such as assisted living medical deduction IRS benefits.
Additionally, families in Newcastle, Bellevue, and surrounding areas must consider how dependency status affects Medicaid eligibility. In some cases, claiming a parent as a dependent could disrupt or disqualify them from state benefits.
How to Claim Senior Living Deductions
To deduct senior living expenses, complete Schedule A (Form 1040 or 1040-SR). The total amount that can be deducted is 7.5% of adjusted gross income.
Keep in mind, the 7.5% limit includes other medical expenses, such as:
Paid insurance premiums
Nursing services
Doctor and lab fees
Dental treatments
Medical appointment transportation
Personal care items, including food for a special diet or disposable briefs
Prescription medications
Wheelchairs
Artificial limbs and teeth
This means that the medical portion of senior living expenses—when combined with other eligible medical expenses—must exceed 7.5% of your AGI before any deduction applies. This is why clear documentation is essential when determining are assisted living expenses tax deductible in 2020 and in all tax years moving forward.
Tips for Deducting Senior Living Expenses
If you’re going to deduct senior living expenses, be sure that you keep detailed records. Everything you have paid for must have a receipt. You will need those receipts if the IRS decides to do an audit.
Also, keep in mind that making your older parent a dependent could end up affecting their Medicaid eligibility or their health insurance costs. Some people need to weigh the pros and cons of making their older parent dependent because they will lose more money by becoming Medicaid ineligible or having to switch insurances with higher premiums.
These considerations are especially important for families in King County, where senior living costs are often higher than the national average. Understanding the difference between what is tax deductible and what is not can significantly influence long-term care planning.
When Independent Living May Be Tax Deductible
Many families ask whether is independent living tax deductible or is senior independent living tax deductible.
In most cases:
- Independent living is not tax deductible because it is not classified as medical care.
- Only specific medical expenses incurred within an independent living setting may qualify.
- A medical care plan from a licensed professional is required before any deductions can apply.
If independent living is chosen purely for convenience, lifestyle, or preference, it does not qualify for the IRS assisted living deduction 2020 standards or any subsequent tax years.
Contact a Professional Tax Preparer
If you have questions about senior living expenses and claiming them on your tax return, contact a professional tax preparer. This person will be able to help you understand if you’re able to claim those expenses as deductions.
Because tax laws shift frequently, especially regarding medical deductions and elder care, having a professional review your situation can prevent costly mistakes and ensure you’re taking advantage of every deduction available.
Why Families Choose A1 Senior Care Advisors
Families across Newcastle, Bellevue, Renton, Issaquah, Kirkland, Redmond, and Mercer Island rely on A1 Senior Care Advisors because understanding senior living, taxes, cost structures, licensing, and available care types can feel overwhelming. Our team specializes in helping families find the right senior living community while also explaining financial implications that impact long-term planning.
We walk families through the differences in cost between assisted living, memory care, adult family homes, and skilled nursing care—all of which intersect differently with tax deduction rules. Whether you’re trying to understand are senior living expenses deductible or evaluating full-time care options, our advisors provide clarity, direction, and support.
Our services are completely FREE to families, and we personally tour and evaluate communities across King County. We understand the emotional weight behind these decisions and bring compassion, experience, and dedication to every family we serve.
Frequently Asked Questions
1. Are assisted living expenses tax deductible in 2020 and beyond?
Yes—if the resident meets medical criteria and has a prescribed care plan, certain assisted living expenses may qualify as deductible medical expenses. The rules that applied under are assisted living expenses tax deductible in 2020 continue in updated IRS guidelines today.
2. Are senior living expenses deductible for adult children?
They can be, but only if the parent qualifies as a dependent and if the expenses qualify as medical expenses under IRS rules. This is one of the most common questions related to are senior living expenses deductible.
3. Is independent living tax deductible?
Generally, no—unless the resident has a medically necessary care plan. Families often ask is independent living tax deductible, but deductions typically apply only to medical care, not housing costs.
4. Can you deduct assisted living expenses on your taxes if only part of the care is medical?
Yes, but only the medical portion is deductible. This aligns with IRS guidelines surrounding can you deduct assisted living expenses on your taxes.
5. What documentation is required for the assisted living medical deduction IRS allows?
Families must have receipts, medical care plans, and proof of medical necessity. This applies across all forms of assisted living medical deduction IRS requirements.
Conclusion
Senior living tax deductions can provide meaningful financial relief, but only when families understand IRS rules and how they apply to assisted living, memory care, skilled nursing, and independent living. With clear documentation and guidance from tax professionals, many families can take advantage of the deductions available to them.
Call to Action
A1 Senior Care Advisors
12520 SE 72nd St, Newcastle, WA 98056
Phone: 425-324-5592
Email: A1CareAdvisors@gmail.com
Website: www.A1SeniorCareAdvisors.com
Serving: Newcastle, Bellevue, Renton, Kirkland, Issaquah, Redmond, Mercer Island, and surrounding King County communities.
If you need help understanding care options, choosing the right senior living community, or navigating financial considerations, A1 Senior Care Advisors is here for you—always free, always local, and always committed to your family’s well-being.
