Tax time is stressful for everyone, but there may be some good news for seniors receiving medical care in their homes, assisted living communities, skilled nursing settings or other senior living community options. Whether you’re a senior citizen preparing your taxes and dreading a hefty tax bill or just looking for a way to receive a better refund, keep in mind that you may be able to reduce your taxes by taking deductions.
Plenty of senior living expenses aren’t deductible, but some medical costs may be.
“A lot of the deductions depend on the (health) condition of the taxpayer,” says Paul Miller, a certified public accountant and managing partner at Miller & Company, an accounting firm headquartered in New York City.
Read on to learn about what you can and can’t deduct when it comes to senior living expenses.
[Read: The Highest Medical Costs to Expect in Retirement.]
Senior Living: What’s Deductible and What’s Not?
There is no official age when you become a senior citizen (you can be 99 years old and refuse to think of yourself as a senior citizen). Still, society tends to regard 65 as the definition of senior citizen. In fact, the Internal Revenue Service offers an additional standard deduction once you turn 65.
For your 2025 taxes, the standard deduction is:
— $31,500 — married and filing jointly or qualifying surviving spouses
— $23,625 — head of household
— $15,750 — single or married and filing separately
If you are 65 or older, or if you’re blind — or you have a spouse who falls into that description — can raise your standard deduction. You’ll receive an additional standard deduction of:
— $2,000 if you are 65-plus or blind
— $4,000 if you are 65-plus and blind
— $1,600 per person if you’re married and filing jointly and either of you are blind or 65 or older
— $3,200 per person if either of you or both are blind and 65 or older
In addition to everything mentioned, if you are 65 and older, taxpayers — and their spouses if filing jointly — can claim a $6,000 deduction per qualified individual per tax year in 2025 (as well as 2026-2028).
However, if you are 65 and older but have an adjusted gross income that exceeds $75,000 for individual filers or $150,000 for joint filers, your additional deduction is reduced by 6% for every dollar above those income limits.
All of that said, aside from that additional deduction, “tax law doesn’t distinguish between taxpayers on the basis of their age,” says Karen Wallace, an accounting professor who teaches a course on income tax at Adelphi University in Garden City, New York. “That is, if an amount is deductible, it’s deductible whether you are 9 or 90.”
Still, senior citizens tend to have more deductible medical expenses than younger individuals.
The phrase “senior living deductions” is a misnomer. Wallace says that, “generally speaking, living expenses aren’t deductible. Instead, certain types of personal expenses are deductible.”
Deductible expenses:
— Medical expenses
— Taxes
— Charitable contributions
— Certain types of interest expense
[READ: The True Cost of Aging: A 2026 Budget Comparison of Senior Living and Aging in Place Options]
Qualifying as a “Chronically Ill” Resident for Tax Purposes
There is one situation in which a senior is typically going to have no trouble taking deductions — a senior who is defined as “chronically ill.”
To qualify as “chronically ill” for tax purposes, a licensed health practitioner must have certified in the last year that the resident cannot perform at least two activities of daily living (or ADLs), such as eating, dressing, bathing and toileting — and that they won’t be able to for at least 90 days.
Or it can be a situation in which the senior requires substantial supervision due to severe cognitive impairment, such as Alzheimer’s, and if they were to be on their own, they would be in danger of getting hurt.
In other words, if it’s medically necessary for a senior to have somebody taking care of them and they can’t live on their own, the IRS generally allows for a tax break. If it’s a situation in which you might prefer somebody helping out but a physician feels that you’re still relatively self-sufficient, you can pay for the help, but the IRS won’t let you deduct that help on your taxes.
[Read: How to Find the Best Memory Care Facility Near You: A Checklist]
Keep Track of Your Medical Expenses
Most everything defined as a medical expense will be deductible.
For instance, Miller says that you may be able to deduct a chair lift or a trained service dog.
You could simply do your taxes and just take the standard deductions that the IRS provides, but you might instead choose to itemize deductions. You’re allowed to choose the route that brings down your tax bill the most.
“Seniors frequently incur such significant medical expenses that it is more advantageous to itemize their deductions than to take the standard deduction,” explains Wallace.
Deductible medical expenses include:
— Medical bills in general. “Deductible expenses include amounts paid to qualified medical professionals, amounts paid for hospital services, nursing services, lab fees, diagnostic tests and prescription drugs,” Wallace says.
— Travel and lodging costs associated with receiving medical care. “Seniors may also deduct the transportation costs associated with their care,” Wallace says. She says that many seniors may find it easier to use the standard mileage rate. In 2025, that’s 21 cents per mile, unbudged from the year before, for the cost of automobile travel to and from medical visits. “In addition, parking and tolls are deductible,” Wallace adds.
— Home health services. Do you have a home health aide checking in on you? You may be able to deduct their fees. “Given the high cost of these services and the complexity of rules regarding their deductibility, seniors are well advised to consult an accountant or elder care expert to determine if any of these expenses are deductible,” Wallace says.
— Premiums for medical insurance. This is important to remember, Wallace says. She says that deductible expenses include insurance coverages, such as Medicare Part A (hospital insurance), Medicare Part B (medical insurance), Medicare Part D (prescription drug plans), Medicare Advantage (private alternative to Medicare), Medicare Supplemental Insurance (Medigap). “While the premiums associated with these coverages will vary by the individual and nature of their coverage choices, almost all seniors in the U.S. who are eligible for Medicare will pay deductible insurance premiums,” Wallace says.
— Medical equipment. “These include mobility supports like wheelchairs and scooters, medical devices, hospital beds and portable ramps,” Wallace says. It also includes eyeglasses, hearing aids, catheters, dentures, oxygen tanks and other durable medical equipment.
What Senior Living Expenses Can You Deduct From Your Taxes?
An Important Rule About Itemizing Senior Living Expenses
You can only deduct medical expenses after they exceed 7.5% of your adjusted gross income (AGI). So if your medical expenses are, for instance, 15% of your AGI, you’re on the hook for the first half of those expenses. But the money you spend beyond that, you can deduct.
“Only about 10% of taxpayers currently itemize deductions since the standard deduction was increased in 2018 with the Tax Cuts and Jobs Act of 2017,” says Mark Luscombe, principal analyst for Wolters Kluwer’s Tax and Accounting Division North America. Luscombe is based out of Chicago.
But for those with high medical expenses, it may be a good idea to itemize your costs and see if it reduces your tax bill.
“In a nursing home, all of the expenses may be considered medical expenses if the resident is chronically ill,” Luscombe says. “In an assisted living facility, the medical component may be deductible; however, the room and board cost may not be deductible.”
Both Luscombe and Miller say that assisted living facilities will generally provide bills with a breakdown between the medical component and other costs to make it easier to prepare your or a parent’s taxes.
[READ 7 Ways to Reduce Health Care Costs in Retirement]
Should You Make Your Parent a Dependent?
There may be a tax benefit for adult children who are helping to support a parent.
If you provide over 50% of their support, and their earnings are under a certain threshold — for 2025 that threshold was $5,200 — you can claim your parent as a dependent, says Edward Nisanov, CEO and owner of New York-based Nisanov Tax Group.
You get a $500 deduction for each dependent, the IRS notes. If you’re contributing more than 10% of the support according to a multiple support agreement (a legal declaration that must be signed by all parties that are contributing to the senior’s care), you may be eligible for a deduction.
Nisanov adds that even single people with no children who declare a parent as a dependent can also claim head-of-house status.
“This means a larger standard deduction than if they were to file without this designation,” he explains.
Work With a Tax Professional
Taxes can get complicated. But as Luscombe says, there is also a tax credit for low-income elderly and those with disabilities, which ranges between $3,750 and $7,500, that many senior citizens may be unaware of.
Spending a little money on a tax professional could save you money, or if you’re eligible, you won’t have to pay for professional tax help. The IRS offers Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs to qualified individuals, which offer free tax return preparation for seniors. In addition, there are often free resources you can access via a local senior center or local Area Agency on Aging.
Senior Living Tax Break FAQs
Is long-term insurance tax deductible?
Long-term insurance benefits are not tax deductible.
Are home health aides tax deductible?
Services rendered by home health aides may be tax deductible, provided they are related to a medical necessity. This means that if a home health aide is offering nursing care but also running errands, only the time they spend on the nursing care would be tax deductible.
Are assisted living expenses for memory care and dementia deductible?
Some assisted living expenses for memory care and dementia are tax deductible. Because memory care is typically used to look after someone with dementia and is usually related to medical necessity, individuals receiving memory care may be able to deduct most of their expenses. Room and board in memory care is generally tax-deductible if a doctor certifies the resident is “chronically ill” and the stay is primarily for medical/nursing care. The facility must provide a written plan of care, and total qualified medical expenses must exceed 7.5% of your adjusted gross income (AGI)
Can I deduct senior living expenses if I don’t itemize?
No, medical expenses must be itemized on Schedule A if you’re not taking the standard deduction.
What part of senior living rent is tax deductible?
Rent is only deductible if the stay is primarily for medical reasons and the resident has been identified as “chronically ill.”
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Senior Living and Taxes: What’s Deductible? originally appeared on usnews.com