Tax Deductibility of Individual Long Term Care Insurance Premiums
Premium payments for a tax-qualified long-term care insurance policy are deductible as personal medical expenses for those taxpayers who itemize their deductions.
Age Per-Individual
40 Or Under - $260
41-50 - $470
51-60 - $940
61-70 - $2,510
Over 70 - $3,130
IRS Maximum Federal Income Tax Deductible Amounts for 2004.
Amounts indexed annually for inflation.
Deductions can be taken for individuals, their Spouses and tax dependents (such as parents) and are subject to the same tax rules as traditional medical expenses (such as the 7.5% AGI floor).
These deductible amounts are subject to dollar limits based on the individual taxpayer’s attained age before the close of the tax year. These limits are annually indexed for inflation.
Payments for a tax-qualified long-term care insurance policy purchased by a self employed individual or sole proprietor are currently treated as medical insurance premiums with the same limits as those for individual taxpayers.
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