Tax season can be stressful no matter what stage of life you are in. For those of us in Senior Living communities or with loved ones as community members, it can be an especially stressful time. Having to save as much money as possible is a necessity for most families at this time of the year. Take the time to remember these potential deductions that could help you out this tax season.
1. Medical Expenses
You’d be surprised at the number of people that fail to realize that their medical and dental expenses can be a deduction. In order to qualify for this type of deduction, your or your loved one in Senior Living must itemize specific expenses on your 1040.
According to the IRS, medical expenses that qualify for this deduction include:
- Medical services
- Medical equipment
- Insurance premiums
- Transportation to care
- Long-term care insurance
Keep in mind that these deductions will only apply to expenses that are more than 7.5% of your adjusted gross income (AGI).
2. Long-Term Care Deductions
Assisted living facilities like Cornerstone can also help create deductions of expenses on your taxes. In this case, not only can you factor in the above medical deductions, but you can also include:
- Life-care fees
3. Home Sale Tax Deduction and Senior Living
Sometimes when people make the decision to move into Senior Living, they leave behind a home that is eventually sold because of downsizing. According to the IRS, depending on their filing status, homeowners that sell their home can gain between $250,000 and $500,000 on a tax return. By working with a local property tax consultant, your family can be positive of where they stand as far as these types of deductions are concerned.
4. Credit for the Elderly or Disabled
Age, income, and filing status always play a role in the types of deductions that you or a loved one can take. For example, if your loved one is 65 or older, and are retired, there are specific deductions that can be taken. This also applies if they are under 65 and on permanent disability.
As mentioned before, the AGI of your income matters when it comes to deductions. Based on your status, if you make less than a specific amount a year, you could qualify for this credit. Speak with a local tax professional to find out the details of the current tax year.
Take Advantage of Deductions by Living at a Cornerstone Senior Living Community
When you make the choice to move into a Senior Living community, you are making the choice to enjoy your senior years in comfort and good company. At Cornerstone Senior Living, we make every effort to ensure that you and your loved ones feel welcome and at home in our community. Reach out to us today to schedule a tour of a community near you.