Taxed Out

Do you feel good about your taxes this year? Whether you filed early or just squeaked in by April 15, finishing tax season always brings a wave of relief. But April is also Stress Awareness Month—a reminder that financial stress doesn’t end with taxes.

Long-term care is one of the most significant—and often misunderstood—expenses people face as they age. Much like taxes, long-term care costs come with fine print, unexpected fees, and serious stress when you’re not prepared. And while some care-related costs can offer tax deductions or credits, many people miss them entirely.

At Longevity Income Solutions (LIS), we specialize in helping families uncover these hidden expenses before they become emergencies. Let’s explore five of the most common long-term care costs that sneak up on families—and how to plan for them, emotionally, financially, and— yes—even when it comes to taxes.

1. Transition Costs Between Levels of Care

From independent living to skilled nursing or memory care, older adults may transition through several care settings—each with its own fees, deposits, and rising monthly rates.

Why it happens: Changes in health often trigger rapid moves that weren’t budgeted for.

Tax connection: Entry fees or monthly costs in some senior living communities may qualify for partial medical deductions if they include healthcare services—but only if itemized.

LIS helps clients evaluate all potential care paths and ensures budgets reflect likely transitions—before they’re needed.

2. Out-of-Pocket Medical Expenses

Not everything is covered by Medicare or insurance. Hearing aids, dental care, vision services, over-the-counter items, and specialty prescriptions can hit hard.

Why it happens: People assume Medicare is more comprehensive than it is.

Tax connection: Many of these expenses are eligible for itemized medical deductions—but only if you track and document them properly.

LIS helps families understand what’s covered, what’s not, and how to account for those gaps in both budgeting and tax preparation.

3. Non-Medical Personal Care Services

Help with bathing, dressing, transportation, and meal prep are vital—but often not covered by health insurance since they’re not “medical care.”

Why it happens: Families overlook these daily support needs until they become urgent.

Tax connection: If a doctor certifies a chronic condition and a care plan is in place, some personal care expenses may be deductible.

LIS collaborates with clients to build flexible plans that cover both medical and personal care needs—while making the most of any tax advantages.

4. Home Modifications

To safely age in place, homes often need modifications like grab bars, stair lifts, walk-in tubs, or entry ramps.

Why it happens: Many modifications are needed only after a fall or medical event.

Tax connection: These updates can sometimes be claimed as medical expenses if they don’t increase the home’s value.

LIS helps evaluate current living spaces and plan for potential safety upgrades, including how to track costs for future deductions.

5. Caregiver Burnout and Lost Wages

When a family member steps into a caregiving role, the costs aren’t always obvious. Travel expenses, stress-related health issues, and reduced retirement savings can take a major toll.

Why it happens: Caregiving often begins informally and escalates over time.

Tax connection: Some caregivers may qualify for a dependent care credit or be able to claim a parent as a dependent, but the rules are complex.

LIS offers clear guidance on creating a plan that includes professional support, protects caregiver health, and helps families explore every financial and tax benefit available.

Planning ahead means less stress with better outcomes. When long-term care costs are left unplanned, the emotional toll is just as heavy as the financial one.

That’s why LIS exists. With deep experience in healthcare and financial planning, we help families find the hidden costs of aging, map out a care journey, and build customized financial strategies—including ways to prepare for tax time.

Tax season might roll around again next April, but financial surprises don’t have to be part of your future. Let’s take the stress out of long-term care—together.