Little-Known Tax Break Available to Seniors at Some LTC Facilities

Many seniors might not be aware that they qualify for hefty tax breaks if they move into a retirement community that offers assisted living and skilled nursing support, according to an article in U.S. News & World Report.

The tax breaks are classified as lifetime-care benefits and children or other family members who provide major financial support for entrance fees and monthly expenses might also be eligible to receive them.

To be eligible for the tax break, seniors must reside at facilities that have non-refundable entrance fees and include access to healthcare services in monthly fees (regardless of whether the resident utilizes those services). In these situations, the IRS views the fees as pre-payment expenses for healthcare services.

For more detailed information, including the amounts than can be deducted based on taxable income, click here.