Can residental board and care be deducted as a medical expense?

1 answer | Last updated: Nov 22, 2016
A fellow caregiver asked...

Can residential board and care be deducted as a medical expense?

Expert Answers

Medical expenses can be tax deductible if they exceed 7.5 percent of someone's adjusted gross income. But the key word there is "medical." Most of what is provided to a resident of a board and care home consists of a room, meals, and assistance with the activities of daily living. For the most part, residential board and care facilities do NOT provide medical care. So, unless some specifically medical care is provided by the board and care home, none of the cost of the residential care is tax deductible.

If the board and care home does provide some medical care, only the portion of the monthly cost that can be attributed to the medical care can be deducted as a medical expense. If the resident you're asking about does receive some care from the board and care home that you think might be considered medical, discuss the matter with the administrator of the home. If the administrator confirms that some portion of the resident's care is medical, then ask the administrator to give you something in writing that states what portion of the total care provided is medical care. You can then consider that amount as a medical expense, and the resident can deduct it from income tax if his or her total medical expenses exceed 7.5 percent of adjusted gross income.