Tax Facts for Individuals
Premiums paid by an individual for qualified long term care insurance are treated as a medical expense for purposes of itemizing medical expenses.
The amount that can be used in calculating the expense deduction is limited to the lesser of actual premium paid, or "eligible long term care premium." defined as follows:
|
Age of Insured |
2010 LTCI |
2009 LTCI |
|---|---|---|
| 40 or Younger | $330 | $320 |
| 41 through 50 | $620 | $600 |
| 51 through 60 | $1,230 | $1,190 |
| 61 through 70 | $3,290 | $3,180 |
| 71 and older | $4,110 | $3,980 |
The amount of premium paid for the coverage of the individual, spouse and dependents may be deducted to the extent that the total medical expenses, including the eligible long term care premium, exceeds 7.5% of adjusted gross income (AGI). Benefits paid on a qualified long term care insurance policy to an individual are generally not taxable.
Note: Before making tax decisions about long-term care insurance it is essential that you consult with your attorney, accountant, or other tax professional, for advice regarding your own personal situation.
