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[quote=Anonymous][quote=Anonymous]Can anyone comment on the 1099-type forms that you get from the Assisted living place for tax deductions (for medical care exceeding 7.5% of AGI?)

I’ve had two SILs go through this. One’s mother had a golden LTC policy and only had to pay 2 months per year out of her own invested and growing assets.

Another SIL told me that her parents received large statements on both AL and skilled nursing rooms, such that the 7.5% of AGI deduction meant that they really didn’t go through much of their assets. At the time, their CCRC buy-in was in the $400k range and SIL got 90% back for the estate settlement.

Are there any other positive experiences? I’m thinking that the OP might have this experience depending on her parents’ income. [/quote]

You can deduct the cost of long term care from your taxes if the patient  is "chronically ill" and meets the following criteria:

https://www.irs.gov/pub/irs-pdf/p502.pdf

[quote]Long-Term Care

You can include in medical expenses amounts paid for qualified long-term care services and certain amounts of premiums paid for qualified long-term care insurance contracts.

Qualified Long-Term Care Services

Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services (defined later) that are:

1. Required by a chronically ill individual, and
2. Provided pursuant to a plan of care prescribed by a licensed health care practitioner.

[b]Chronically ill individual[/b]
An individual is chronically ill if, within the previous 12 months, a licensed health care practitioner has certified that the individual meets either of the following descriptions.

1. The individual is unable to perform at least two activities of daily living without substantial assistance from another individual for at least 90 days, due to a loss of functional capacity. Activities of daily living are eating,
toileting, transferring, bathing, dressing, and continence.

2. The individual requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment.

Maintenance and personal care services.

Maintenance or personal care services is care which has as its primary purpose the providing of a chronically ill individual with needed assistance with the individual’s disabilities (including protection from threats to health and safety due to severe cognitive impairment).
[/quote]

So yeah, if someone is in assisted living because they can't take care of themselves, at least they can get a pretty big tax deduction.[/quote]

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