Long Term Care Insurance Tax Deduction Eligibility
Beginning in 1996, the Government took another step to encourage Americans to purchase Long Term Care Insurance. The Health Insurance Portability and Accountability ACt of 1996, AKA. HIPAA was passed. HIPAA offers tax incentives to those who purchase a Tax-Qualified Long Term Care Insurance Policy, which is the most common form of policies sold today are tax-qualified.
Tax Qualified Long Term Care Insurance premiums are treated as medical expense deductibles. Medical expenses can be deducted from the amount which exceeds 7.5 percent of their adjusted gross income. The amount of Long TC Insurance premium that can be claimed depends on the age of the insured. See the chart below to see the limit. Some states also may offer additional tax incentives, click here to learn more.
Tax Deduction Limits for Long Term Care Insurance Premiums, 2010
Attained Age |
Deduction Limit |
40 or
less |
$330 |
41-50 |
$620 |
51-60 |
$1,230 |
61-70 |
$3,290 |
71 and
older |
$4,110 |
Source: IRS, 2009
It is also important to check with a personal tax advisor to see how much you can deduct.
Long Term care Tools
- Long Term Care Costs
- Do you need Long Term Care Insurance?
- When to buy Long Term Care Insurance
- Core benefits of Long Term Care Insurance
- Reasons to buy Long Term Care Insurance
- Caregivers role
- Long Term Care Insurance Quiz
- Long Term Care Insurance for same sex/domestic partners
- Request Long Term Care Insurance Quote
