Assisted Living

Most of us are aware that when a taxpayer’s medical expenses exceed a portion (7.5%) of annual income, those expenses can become itemized deductions on tax returns, and taking the decuction, will, therefore, save income taxes. It's tax season and a good time to discuss an important issue for many Low Country senior residents who live in the numerous Assisted Living Facilities (ALF’s herein) in the area. ALF residents should be aware of tax laws specifically applicable to them. ALFs are NOT nursing homes, but they do cater to our elder community and some, if not ALL of the services provided, can fall under the rubric of “medical expenses” as the tax code defines that term so that the entire ALF monthly bill may qualify as a medical expense. And, if not all ALF monthly expenses qualify as deductible medical expense, a portion of the monthly cost probably will.