The IRS has announced increased 2025 tax deductible limits for long-term care insurance according to the American Association for Long-Term Care Insurance.
“Tax deductibility of tax-qualified long-term care insurance premiums remains one of the best kept secrets in financial planning,” states Jesse Slome, director of the American Association for Long-Term Care Insurance. “The 2025 deductible limits are significant and few people, especially small and mid-sized business owners, are aware that premiums paid for long-term care insurance may be tax deductible.”
The just announced 2025 limits for an individual age 70 or more is $6,020, according to AALTCI. “Most policies are purchased by couples which means they could deduct up to $12,040 next year depending on their age,” Slome explains.
Only long-term care policies that meet the federal government’s tax-qualified requirements qualify for a potential tax deduction, the long-term care insurance expert notes. “Most of the linked benefit or hybrid life insurance policies, the ones more popular today do not qualify for a possible tax benefit,” Slome notes.
“Two types of individuals can gain the most benefit from the IRS deductions,” Slome adds. “First business owners, who may be able to deduct the full cost of their insurance protection and have a paid-in-full policy when they reach retirement age.”
In addition, people who have retired from jobs can benefit. “That’s when income levels enable more people to reach the required health expense threshold to make premiums deductible,” Slome acknowledges. “That potential tax deduction can be a huge benefit after retirement and something seniors should take into consideration when looking into their long-term care protection options.”
| Long-Term Care Insurance Premium Deduction Limits |
| Taxpayer's Age At End of Tax Year |
2025 Tax Year |
2024 Tax Year* |
| 40 or younger |
$480 |
$470 |
| 41-50 |
$900 |
$870 |
| 51-60 |
$1,800 |
$1,760 |
| 61-70 |
$4,810 |
$4,710 |
| 71 or older |
$6,020 |
$5,880 |
This information is not a substitute for expert tax advice. Please contact a tax professional for complete details.