VALHALLA, NY – Congresswoman Nita Lowey (D-Westchester/Rockland) is fighting to stop an unfair tax on seniors in assisted living facilities. 

Seniors entering these facilities often pay initial entrance fees that can total many thousands of dollars followed by monthly residency fees.  Residents use money they have worked hard to earn and invested throughout their lives to purchase the housing and services provided by assisted living communities.  In addition to the income taxes residents have already paid on these funds, the Internal Revenue Service (IRS) is levying a second tax on the entrance fees, treating them as interest-income over the time seniors live in the facility.   However, seniors never receive any interest because the fees are payment for their residency.

“This is a double tax on seniors who have worked hard to save for their retirements.  This tax is unfair, and Congress must stop it now,” said Lowey.

Today, Lowey was joined by residents of the Westchester Meadows and Kendal on Hudson assisted living communities to announce that she is co-sponsoring legislation to make it clear to the IRS that entry payments should not be taxed.  H.R. 4608, the Continuing Care Seniors Housing Act, would ensure that seniors in assisted living facilities are not levied this tax on their housing costs.

“Seniors shouldn’t pay taxes on interest income they simply don’t earn.  This bill would end this hurtful double tax on seniors in assisted living facilities.  I will continue fighting to pass this and other legislation to ensure retirement security for our seniors,” said Lowey.