Submitted By: Howard
Answered: May 22, 2015 9:40 am

My mother lives in an assisted living facility and pays a flat monthly fee covering meals, lodging, and services. Is the fee deductible?

The fee can be deductible as an itemized medical expense (in excess of 7.5% of adjusted gross income if your mother is 65 or older) as long as entry into the facility is on the direction or suggestion of a doctor for a specific (not general) ailment and the facility provides treatment for the ailment or condition. The fee does not have to be allocated in this case between medical services and other costs.

Tax Glossary

Adjusted gross income (AGI)

Gross income less allowable adjustments, such as IRA, alimony, and Keogh deductions. AGI determines whether various tax benefits are phased out, such as personal exemptions, itemized deductions, and the rental loss allowance and modified adjusted gross income (MAGI).

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