11 Senior Living Expenses You Can Write Off on Your Taxes

Seniors living on a fixed income face their own unique financial challenges, but the underlying theme is that they want to maximize retirement savings. Some costs are unavoidable as you age, but the good news is that many of these expenses can be legitimate tax write-offs during tax season.

To qualify, these expenses must exceed 7.5% of your adjusted gross income (AGI). Understanding what qualifies is easier than you think, though, and can have a big impact when it comes to filing.

Discover 11 senior living expenses you can write off next year to save big during tax season.

Around 818,000 people reside in an assisted living facility, meaning this is a popular deduction for seniors. The average cost of a private room in a nursing home is more than $8,000 a month.

In order to write off this expense, your assisted living case must not be covered by insurance, and the individual must be considered "chronically ill" and living in the facility is actually part of a care plan outlined by a licensed health care provider.

More than half of seniors aged 65 to 74 wear dentures. Dentures can help you enjoy the foods you love, speak properly, and maintain a healthier mouth. However, this isn't to say they come at a low cost.

A full set of traditional dentures typically costs around $1,800, while implant-supported dentures can cost around $4,000. Your expenses may change based on several factors, but these costs could be tax-deductible if dentures are medically necessary.

A vast majority of older Americans need some sort of prescription eyewear. The average cost of an eye exam ranges from $70 to $200, while contact lenses can cost up to $1,000 per year and eyeglasses around $250.

If your eye doctor determines that eyeglasses or eye surgery are medically necessary, you might be able to deduct the parts not covered by insurance.

Some elderly individuals prefer to receive long-term care in their own homes rather than in an assisted living facility. In fact, more than 12 million Americans receive home health care, with the average cost coming in around $33 per hour.

You can deduct the cost of hiring an in-home nurse if they're providing personal care or routine support. For instance, you might need to hire a nurse who can assist with routine personal care tasks or regularly check vital signs. Writing these costs off on your taxes is a great way to stretch your retirement dollars further.

Nearly 40% of older adults have at least one disability, and mobility-related disabilities are one of the most common types. A lack of mobility could make it hard to walk, climb stairs, and perform daily activities.

The IRS states that you could write off the money you spend modifying a home for accessibility, including special equipment. These deductions include widening doors, installing railings, and adding lifts or ramps.

A long-term care insurance policy covers the services that aren't covered by a traditional insurance policy but are still needed if you're chronically ill. For instance, if you're suffering from Parkinson's, you'll need assistance with daily routines like getting dressed and bathing. These are the tasks long-term care insurance covers.

This year, the IRS allows for a long-term care insurance premium of up to $4,710 for an individual aged 61 to 70 and then $5,880 for someone aged 71 and older.

Wheelchairs, walkers, and portable oxygen tanks are just some of the pieces of medical equipment that your doctor can recommend.

If not covered by insurance, there's the possibility you can deduct these items when filing your taxes. Be sure to save your receipts so you have them when tax season comes around.

Nearly 90% of adults 65 and older take prescription medication, yet one in five of them don't have insurance to cover the costs. If your doctor prescribed medication to treat a health condition, your out-of-pocket expenses may give you a tax deduction. This includes insulin for treating diabetes.

Seniors may require additional support after undergoing medical treatment or surgery. Rehabilitation, physical therapy, and occupational therapy focus on recovery from an injury. The goal of these therapies is to regain strength, flexibility, and independence to make daily tasks more manageable.

Therapy can help people with arthritis, a chronic heart condition, diabetes, chronic pain, vision problems, or mobility issues. You could deduct the part of the therapy cost not covered by insurance.

Do you travel for many of your medical appointments? If so, you may be eligible for a tax write-off. From public transportation to gas and tolls, it's worth keeping track of these expenses so that you have them readily available when preparing your tax paperwork.

Sometimes, you may need to travel long distances over multiple days to receive necessary medical care. As of 2024, the IRS states that you can include a deduction of $50 per night per person who accompanies you on a trip to receive medical care, with certain limits. Limits include meals not being included as part of your deduction, for instance.

Whether you're navigating these expenses yourself or helping a loved one manage their own costs, understanding what items are tax-deductible can help eliminate some money stress.

Remember that you must itemize these deductions rather than take the standard deduction, so consider consulting with a tax professional to see what works for your situation.