14 Dec FAQ: Can I Use Nursing Home Expenses for the Housing Allowance?
For clergy who are living permanently in a nursing home, they can use some (but not all) of their nursing home expenses for the housing allowance. For example, the rental cost of their room and the utilities are eligible for the housing allowance. The food and medical care are not eligible for the housing allowance. Not every nursing home provides the breakdown of the bill upfront, so you may need to ask the administrator or accounting department of the facility to provide an itemized list of the monthly expenses. Your tax preparer will use this to determine what is deductible.
Clergy who live only temporarily in a nursing home continue to use expenses from their principal residence for the housing allowance, not the nursing home. Also, if the housing allowance is applied against permanent nursing home costs, it cannot apply for a separate home where the spouse lives.
Long term care insurance premiums and medical care costs can be claimed on Schedule A (assuming that they exceed the threshold set by tax law).
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