I will be able to self-pay for care if I didn't have to pay income tax. I have a good income thanks to pensions, SS and IRA. It could cover nursing home at today's prices, plus I have LTC insurance. I don't own a house. My taxes are high, and I wondered how much of a deduction I would get if I have to pay for long term care.
We have to go through this every year for myself and my wife is the POA for parents. Her father recently passed away I don't know how this will work with only her mother living in assisted living.
Because my father-in-law chooses not to have taxes withheld out of his retirement he had to pay the taxes on the back end, as do I. It is best to have a good CPA. which it'll depend on how your retirement accounts were set up.
The "good" thing is that some of the costs of Assisted Living or Memory care facility might be able to be written off as a Medical Deduction.
I suggest you talk to 2 important people in this equation.
1. A good lawyer that specializes in Elder Law.
2 A good tax preparer, CPA or Accountant that is aware of Elder Law and how best to complete an accurate Income Tax Form .
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