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Question 3 of 3 in Tax Implications |
What are the qualifications for the tax deduction? |
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Subject to dollar limitations, premiums paid for qualified long term care policies are deductible as a medical expense. (In this regard it should be noted that policies issued prior to 1997 are automatically considered to be qualified if they meet state requirements.)
In order to benefit from the deduction, you must itemize your deductions rather than take the standard deduction. In addition, only medical expenses in excess of 7.5% of adjusted gross income are deductible. The dollar limitation on the deductibility of premiums varies by age: $210 for ages 40 or younger, $400 for ages over 40 but not more than 50, $800 for ages older than 50 but not more than 60, $2120 for ages over 60 but not more than 70, and $2660 for those over 70.
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Long Term Care Insurance Center
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