For many older adults and their families, the cost of long-term care—especially nursing home care—can be overwhelming. If you or a loved one are facing these expenses, you might be wondering: Can I deduct these costs on my taxes? The answer is, in many cases, yes—but with important caveats. Here’s what you need to know about how the IRS treats nursing home expenses.
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When Are Nursing Home Costs Tax Deductible?
According to the IRS, medical expenses—including many long-term care costs—can be deducted if they exceed 7.5% of your adjusted gross income (AGI) and if you itemize deductions on your tax return.
Nursing home expenses may be deductible if the primary reason for being in the facility is to receive medical care. This means that:
- If the resident is in the nursing home primarily for medical reasons (e.g., chronic illness, Alzheimer’s, post-surgery rehab), then the entire cost—including meals and lodging—may be tax deductible as a medical expense.
- If the individual is in the facility for personal care or custodial reasons (e.g., they just need help with daily living tasks but don’t require medical treatment), then only the portion related to actual medical care is deductible.
It’s important to have documentation from the facility clearly outlining which services are considered medical.
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Who Can Claim the Deduction?
The person who pays the bill may be eligible to claim the deduction. This could be the patient themselves or a relative—such as an adult child—if that person claims the nursing home resident as a dependent.
To claim someone as a dependent, several IRS criteria must be met, including providing more than half of their financial support and ensuring their gross income is below a certain threshold. It’s best to consult a tax advisor if you’re in this situation.
What About Long-Term Care Insurance?
If you’re paying for care using long-term care insurance, some or all of the premiums might also be deductible, depending on your age and the type of policy. The IRS allows for deductions of qualified long-term care insurance premiums up to specific annual limits based on age.
Keep Records
If you plan to deduct nursing home expenses, maintain thorough documentation. This includes:
- Detailed invoices from the facility
- A breakdown of medical vs. non-medical costs
- Letters from doctors confirming the need for medical care
- Proof of payment
Why This Matters
For individuals living on fixed incomes—such as disability benefits, pensions, or 401(k) withdrawals—every dollar counts. Understanding the tax rules around nursing home expenses can make a significant difference in your financial picture.
At our firm, we’ve spent years helping clients navigate the complex systems around disability and elder care. Now that you’ve secured your benefits, we want to help you stay informed and empowered—especially as you or your loved ones face new health and legal challenges with age.
If you or a family member are considering long-term care or have questions about Medicaid planning, estate planning, or other elder law topics, we’re here to help.
Contact us today to schedule a consultation, or subscribe to our newsletter for regular updates on important issues affecting seniors and those on disability.
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