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Larnsal: If you are attempting to claim it as medical expenses, the figure must be more than 7.5% of your AGI (Adjusted Gross Income) and you must file an itemized income tax return. If you don't meet that criteria, you would have to take the standard deduction since that amount would be greater.
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Yes. My Elder Law attorney told me it is deductible and I have been claiming it ever since on my joint taxes with my husband who is in a facility.
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When my daddy was in a group home and I had his taxes done, I kept all his invoices gave them to the tax guy and I was told it was considered medical care. All payments were tax deductible. This was my experience, please save all receipts for medical care, ambulance rides, prescriptions, co-pays and payments made to group-family homes, nursing facilities. Always check with your tax person! Blessings
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That is a good question and one for a Tax CPA. The IRS does allow for rent. I have to remember every year to include how much rent my nephew pays when I have his taxes done. I would say though that her care is included in her overall cost and that may need to be separated out.
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I would expect the facility to give you a statement of how much would be deductible. They may be able to give you an estimate based on the previous year if the current numbers aren’t available yet.

Since she is on Medicaid, I would expect her to be medically qualified as in need of care for ADLs or cognitive deficiencies.

It surprised me that someone with only SS income pays any income taxes, but you could be filing jointly and have enough income between you that there is a tax due.

Do you already use the itemized deduction or are you expecting deductible medical expenses to exceed the standard deduction?
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Not usually, but it depends. In fact the IRS divides what it considers a kind of rental and what it considers care, and a whole lot of cost has to be in care to be deductible. You need definitely to pass this one past your CPA, but when I did so in California for my brother, the 5,000.00 was in no way deductible for his ALF. He was on care level 1 and wasn't needing a lot of care that would qualifiy. Had he needed to be moved to memory care there would have been deductions I was assured.

Again, when you need expert advice do just check in with an expert, doctor, lawyer, CPA, etc. We are just a forum and you can't afford faulty or wrong advice in these matters.

Sure wish you the best.
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