Medical Deduction Letter

January 16, 2020

Dear Residents:

We have calculated the medical costs that are associated with the monthly fee and entry fee using the per-capita (actuarial) method for residents whose contracts include prescription drug coverage.  The actuarial method assumes that the per-capita amount will continue to apply regardless of the level of care.

Based on the characteristics of the residents in 2019, the prepaid health care amount has been calculated on a per-capita basis, reflecting that health care is utilized on an individual basis.  The monthly fee medical deduction for 2019 has been determined to be $1,475 per month per resident.

The cost of medical care combined with any other allowable medical expense you have paid in 2019 is deductible only to the extent they exceed a specified percentage of your adjusted gross income.  Please make reference to the instructions for completing Schedule A of the Federal Tax Form 1040.

As always, please consult your personal tax advisor if you have any questions concerning your allowable medical deduction for both Federal and State income tax.

Sincerely,

Brent B. Edgerton

Associate Executive Director


January 16, 2020

Dear Residents:

If you itemize deductions in your 2019 federal income tax return, you may be able (under Internal Revenue Service Ruling 76-481) to take a medical deduction for a portion (up to 100%) of the monthly fees you paid in calendar year 2019.  If your health related needs require at least 2 out of 6 activities of daily living for a period of at least 90 days due to the loss of functional capacity, we have calculated that 100% of the monthly fees may be added to your other eligible medical expenses reportable in Schedule A, Line 1 of the federal tax return.  If your health related needs do not meet the above requirement, we have calculated that $1,325 per month per resident may be added to your other eligible medical expenses reportable in Schedule A, Line 1 of the federal tax return.  We encourage you to consult your tax advisor in determining the level of your medical deduction. 

You may wish to attach a copy of this letter to your federal tax return to assist the IRS in reviewing your submitted return.

Once again, please consult your tax advisor if you have questions concerning your allowable medical deduction.

Sincerely,

Brent B. Edgerton

Associate Executive Director


January 16, 2020

Dear Residents:

We have calculated the medical costs that are associated with the monthly fee and entry fee using the per-capita (actuarial) method for residents whose contracts exclude prescription drug coverage.  The actuarial method assumes that the per-capita amount will continue to apply regardless of the level of care.

Based on the characteristics of the residents in 2019, the prepaid health care amount has been calculated on a per-capita basis, reflecting that health care is utilized on an individual basis.  The monthly fee medical deduction for 2019 has been determined to be $1,325 per month per resident. For new residents who paid an entry fee in 2019, the medical deduction has been determined to be $99,887 for a single occupancy and $168,631 for a double occupancy.

The cost of medical care combined with any other allowable medical expense you have paid in 2019 is deductible only to the extent they exceed a specified percentage of your adjusted gross income.  Please make reference to the instructions for completing Schedule A of the Federal Tax Form 1040.

As always, please consult your personal tax advisor if you have any questions concerning your allowable medical deduction for both Federal and State income tax.

Sincerely,

Brent B. Edgerton

Associate Executive Director