How Will the Elderly be Affected if Health Expense Deductions are Eliminated?

Published On: 01/12/2018

Medical Expense DeductionsFor elderly Americans, some of the proposed tax changes may have a big impact on their bottom line. There is a proposal to eliminate the medical tax deduction which allows people who itemize their deductions to write off certain medical and dental expenses. These deductions extend to "tax-dependents" which may include an aging parent who lives with the taxpayer. This is a tax deduction that approximately 6 percent of filers currently take—often people with expensive care needs such as seniors in nursing homes and people with chronic medical conditions.

Under the current tax code, seniors living in continuing care retirement communities with a Type-A  residency contract who itemize their taxes are often able to deduct a portion of these retirement community fees as pre-paid medical expenses (expense must exceed 10 percent of their AGI). If the medical expense tax deduction is eliminated, this could result in a significant lost deduction for many continuing care retirement community residents.

For more information on estate planning and current tax implications, please contact Stouffer Legal. 

To learn more or get started on your estate plan, just schedule a time to visit us for a no obligation complimentary consultation.

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Britt Stouffer

Britt L. Stouffer is a Maryland attorney experienced in Estates, Trusts, and Elder Law. With over 10 years of experience in Estates and Trusts, she has learned to appreciate how unique each client truly is. On a typical day, you will find her working on Wills, Revocable Living Trusts, Powers of Attorney, Advance Medical Directives, Tax Planning cases, Estate Administration filings, Petitions for Guardianships, Special Needs Planning, and Asset Protection.

658 Kenilworth Dr., Ste. 203, Towson, MD 21204

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