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Assisted living and memory care costs can be tax deductible as medical expenses when the resident is chronically ill and has a plan of care. So can long-term care insurance premiums, up to a limit. Ask a tax professional before you file.
Rules and phone numbers differ by state.Open your state's guide for the local version.
Internal Revenue Service
The IRS rules for deducting medical costs above 7.5% of income, including when assisted living, memory care and nursing home costs count (chronically ill plus a plan of care from a licensed practitioner) and limits on deductible long-term care insurance premiums.
When to use it: At tax time, or before, to document care costs so they can be deducted by the parent or by an adult child who claims the parent as a dependent.
Internal Revenue Service
Official 2026 limits on deductible long-term care insurance premiums by age ($500 to $6,200) and the $430 daily limit on tax-free long-term care insurance per diem benefits.
When to use it: When deducting long-term care insurance premiums or checking whether policy benefits are taxable.
Internal Revenue Service
A working caregiver may get a tax credit for up to $3,000 of care costs (such as adult day care or in-home care) for a spouse or dependent who cannot care for themselves and lives with them more than half the year.
When to use it: When a parent lives with you and you pay for care so you can work.
Internal Revenue Service
For distributions after December 29, 2025, workplace retirement plans that choose to offer it can let savers withdraw up to $2,600 a year (2026) for certified long-term care insurance premiums without the 10% early withdrawal tax.
When to use it: When an adult child under 59 and a half is paying for long-term care insurance and wants to use retirement savings.
The withdrawal is still taxable income, and plans are not required to offer this option.