Under current federal income tax law, you may treat your long-term care insurance premiums as a medical expense, subject to certain limitations. You may deduct premiums (subject to certain limits) paid for tax-qualified long-term care insurance as well as out-of-pocket long-term care expenses-such as nursing home costs paid for a dependent parent-if your total medical expenses exceed 7.5% of your adjusted gross income for age 65 and older and 10% of adjusted gross income if under age 65. Limits on the deductibility of premiums depend on the age of the person insured and are adjusted annually, based on the medical care component of the Consumer Price Index. The deductions for qualified long term care premiums for the year 2016 under Section 213(d)(10) are the following:
|Long-Term Care Insurance Premium Deduction Limits
|Taxpayer's Age At End of Tax Year
||2020 Tax Year
||2019 Tax Year*
|40 or younger
|71 or older
*In addition, for 2017, the per-day limit applicable to aggregate payments for per diem-type long term care insurance contracts and amounts received by a chronically ill individual under a life insurance contract under IRC Sec. 7702B(d)(4) is $360.
This information is not a substitute for expert tax advice. Please contact a tax professional for complete details.