Take advantage of this offer and save 10% on TurboTax!
Nursing home care
Assisted living (if primarily for medical care)
In-home nursing services
Home health aides
Physical therapy
Occupational therapy
Medical equipment
The care must be medically necessary and prescribed by a licensed healthcare provider.
Example: If a doctor certifies that a patient requires assistance with daily living activities, nursing home costs may qualify as deductible medical expenses.
Activities of Daily Living Requirement
To qualify, the individual typically must be unable to perform at least two activities of daily living without assistance, such as:
Bathing
Dressing
Eating
Transferring
Toileting
Continence
Alternatively, care may qualify if the person requires supervision due to cognitive impairment.
Assisted Living and Nursing Homes
If the primary reason for living in a facility is medical care, the full cost may be deductible as a medical expense.
If the stay is primarily custodial or residential, only the medical portion may qualify.
Example: If a senior resides in a nursing facility primarily for medical supervision, the entire cost may qualify as a medical expense.
In-Home Care
Payments to home health aides or nurses may qualify if the care is medically necessary.
However, services such as housekeeping or meal preparation may not qualify unless they are part of medical care.
Long-Term Care Insurance Premiums
Premiums paid for qualified long-term care insurance policies may also be deductible.
However, there are annual age-based limits on how much of the premium can be counted as a medical expense.
These premiums are combined with other medical expenses when calculating the deduction.
The 7.5% AGI Threshold
Long-term care costs are deductible only to the extent that total medical expenses exceed 7.5% of adjusted gross income.
Only the amount above that threshold is deductible.
Example: If your adjusted gross income is $80,000, 7.5% equals $6,000. If your total medical expenses, including long-term care, are $25,000, you may deduct $19,000.
You must itemize deductions to claim this benefit.
What Does Not Qualify?
Generally not deductible:
Purely custodial care without medical necessity
Independent living facility rent
General household expenses
Food and lodging not tied to medical care
Documentation from a healthcare provider is important.
Special Rule for Dependents
You may be able to deduct long-term care expenses paid for a dependent parent or relative if they meet dependency rules.
This can provide significant tax relief for families paying for elder care.
Example: If you pay $30,000 for a dependent parent’s nursing home care and meet dependency requirements, those costs may qualify as medical expenses.
💻 Electronic Filing Recommendation
E-filing helps calculate whether long-term care expenses exceed the 7.5% threshold and whether itemizing reduces your tax bill.
Benefits include:
Automatic medical expense threshold calculations
Real-time comparison of standard vs itemized deduction
Built-in tracking for long-term care insurance limits
Reduced math errors
Faster refund processing
Most tax software guides you through medical expense entry and determines whether your long-term care costs provide a tax benefit.
Long-term care costs can be tax-deductible when medically necessary and properly documented — and in years with significant care expenses, the deduction can meaningfully reduce federal income tax.
Yes, many long-term care costs are tax-deductible, but only if they meet IRS guidelines and you itemize deductions.
