Currently, long-term care insurance premiums may be deductible for federal income tax purposes if your total un-reimbursed medical expenses exceed 7.5% of your adjusted gross income for age 65 and older and 10% of your adjusted gross income if you are under age 65.. [Tell me more]
In addition, more and more states are providing a tax deduction or tax credit for long-term care insurance. 27 states currently provide incentives. [Tell me more]
A Health Spending Account is a trust created or organized in the U.S. to pay for qualified medical expenses (including long-term care expenses and long-term care premiums) of the account holder. An HSA is available only to an employer or individual who participates in a high deductible medical plan. Individual contributions to the account are tax deductible and payments from the account for qualified medical expenses are not taxable. Tax qualified long-term care expenses are considered qualified medical expenses, and can be paid for from an HSA. Please note that this is a very brief summary of complex rules that govern HSAs.
This information is not a substitute for expert tax advice. Please contact a tax professional for complete details.