Tax Estimator

The Tax Definition of Terminally Ill

For tax purposes, a “terminally ill” individual is defined as an individual who has been certified by a physician as having an illness or physical condition which can reasonably be expected to result in death within twenty-four months from the date of certification.
For this purpose, the term “physician” has the meaning given to that term by the Federal Social Security Act- i.e. a doctor of medicine (M.D.) or osteopathy (D.O.).

The Tax Definition of Chronically Ill

For tax purposes, a “chronically ill” individual is defined as an individual who has been certified by a licensed health care practitioner within the preceding twelve-month period as:
A – unable to perform at least two “activities of daily living” without substantial assistance for at least ninety days due to a loss of functional capacity; or
B – requiring substantial supervision due to “severe cognitive impairment” (e.g., memory loss, disorientation).
For this purpose, the term “licensed health care practitioner” includes physicians, registered professional nurses, and licensed social workers. Thus, unlike the “terminally ill” certification, which can only come from a licensed physician, a “chronically ill” certification can come from a physician or certain types of non-physician health care providers.