Tax Write-Offs for Long Term Care Facilities

The IRS issued the following tax rules on long-term care services and insurance in early 1997. For this year, the following rules apply. Please check with your tax preparer for details.

2018 Publication 502 IRS
Topic 502 – Medical and Dental Expenses

If you itemize your deductions for a taxable year on Form 1040, Schedule A (PDF), Itemized Deductions, you may be able to deduct expenses you paid that year for medical and dental care for yourself, your spouse, and your dependents. You may deduct only the amount of your total medical expenses that exceed 9.5% of your adjusted gross income. This includes the cost of care in a facility like Primrose. You figure the amount you’re allowed to deduct on Form 1040, Schedule A.

Qualified long-term care services include necessary diagnostic, preventive, therapeutic, curing,
treating, mitigating, and rehabilitative services, as well as maintenance or personal care services required by a chronically ill person and provided under a plan of care by a licensed health care practitioner within the previous 12 months as ( 1 ) Unable to perform at least two activities of daily living ( eating, toileting, transferring, bathing, dressing, and continence ) without substantial assistance for a period of 90 days due to loss of functional capacity or because of severe cognitive impairment,

( 2 ) having a similar level of disability as determined in regulations, or ( 3 ) requiring substantial supervision to protect themselves from threats to health and safety due to severe cognitive impairment.

If you would like to take advantage of these tax deductions, you will need to get a copy of your family member ’ s care plan or their physician ’ s report from either Dan the nurse or Jennifer to submit with your taxes. We also have a code sheet to give your tax preparer so that they know how you may qualify.