Elder Nursing Homes and Dependent Care Regulations and Tax Credit

In California, laws on elder nursing homes, continuing care retirement communities, and assisted living residences to require licensing, inspection, and certification. Several agencies responsible for licensing and inspection services work with government agencies on state and federal levels to ensure compliance. The stringent oversight is necessary for helping prevent nursing home abuse and neglect.

Let’s review California elder nursing homes and dependent care regulations and applicable tax credits based on what we learned from the Ehline Law Los Angeles Elder Abuse attorneys’ website.

Elder Nursing Home Law in California

California Code of Regulations, Title 22, applies to all community care, elder nursing home, and dependent care facilities regulated by the Community Care Licensing Division.

There are four requirements that a care home facility must ensure, and these include:

• Ensuring the patient has a right of choice.
• Ensuring that the treatment provided to the patient maintains or improves their health.
• Unless it is a chronic or progressive illness, the facility must ensure that the patient’s health doesn’t deteriorate.
• Providing the necessary care and treatment to protect a patient’s physical, mental, and medical well-being.

Title 22 Licensing Requirements

Title 22 licensing requirements address how nursing homes cater to their patient’s needs and handle their lives. The law requires nursing homes to:

• Ensure all dental and medical arrangements are available for residing patients
• Ensure a safe living accommodation for all patients
• Carry out planned activities to keep the patients busy, active, and socializing
• Ensure supervision and observation of all patients
• Provide personal care to residents
• Ensure proper food service for all patients

The following are title 22 licensing requirements highlights:

• A valid license is required.
• The license must be publicly accessible and posted in the center.
• Transfer and sale of the nursing care home.
  • The nursing home must inform the legal guardian 20 days before their intent to sell.
  • The seller must notify the buyer in writing to obtain the necessary license.
  • The buyer must apply for the license within five days of accepting the seller’s offer.
• The department will conduct a criminal record review of all employees at the nursing home or child daycare.
• The department will conduct a Child Abuse Central Index review on the applicant and others subject to the criminal record review.
• The facility must maintain a fire clearance.
• The facility must have the entire plan of operation documented, demonstrating goals, policies, and procedures, among others.
• The facility must write a disaster plan and execute drills every six months.
• The department issues license for a specific capacity.
• The facility must pay an annual fee and the licensing application fee.

U.S. Department of Health and Human Services Enforces Regulations and Laws at Nursing Homes

The Office of Inspector General (OIG) assesses the operations, monitors program change’s impact, and addresses misconduct at nursing homes in the United States.

Protecting Residents from Fraud and Abuse

Nursing homes should foster an environment free of fraud, abuse, or neglect. Unfortunately, over the years, OIG has exposed the veil that hid corruption, misconduct, and substandard care at such dependent living facilities.

The OIG works with the Department of Justice to address nursing facilities’ negligence and lack of care. Any facility that violates the rules and regulations imposed by the OIG is held accountable.

Promote Emergency Preparedness

Facility administrators are responsible for planning and executing safety procedures during emergencies such as outbreaks, national disasters, and other threats. Noncompliance with emergency preparedness requirements can increase the risk of injuries and deaths for all individuals at residential care facilities.

Bolster Frontline Oversight

Survey agencies conduct investigations into nursing care quality and safety by conducting on-site surveys, which help evaluate the standard of care provided at the facilities.

Support Federal Monitoring of Nursing Facilities

Federal agencies work with state agencies, sharing responsibility for ensuring assisted living facilities follow the federal requirements for quality care and safety.

Claim Dependent Care Tax Credit for Skilled Nursing Facilities

You may qualify for a federal tax credit if you have elderly parents and are paying for their care or adult day care costs. It is work-related expenses filed on federal Form 2441 regardless of the qualifying dependent living in an assisted living facility, nursing care home, or their own home.

To claim someone as your qualifying relative/dependent on your federal tax return, you must fulfill the following requirements:

• The person cannot be the qualifying relative/dependent of another taxpayer.
• The qualifying person must live with the taxpayer for six months and share a marriage or blood relationship.
• The qualifying person must have a gross income lower than $4,300
• The taxpayer must pay more than half of the financial support towards the qualifying person.

The requirements to be eligible for tax credits include:

• The person receiving care must be physically and mentally unable to care for themselves.
• The qualifying individual’s gross income should not exceed $4,300.
• The person receiving care must live with the taxpayer for over six months (more than half a year).
• The taxpayer must be earning income.

Depending on your adjusted gross income, you may be eligible for up to $5,000 in elderly dependent care costs (tax credit) from your salary. You can reduce your parent’s or qualifying dependent relative’s unreimbursed dental and medical expenses by itemizing deductions.

Avoid hiring a spouse to provide care, as you must register their social security and employment ID number on your tax return. Doing so will make you a “household employer” subject to unemployment taxes, pay social security, and other fees. To learn more, it is helpful to get a free consultation from a reputable elder abuse attorney near you.

Other Sources:

• Medical, Nursing Home, Special Care Expenses – IRS.
• How the Build Back Better Framework Will Support the Sandwich Generation.