Is Long Term Care Insurance Payments Tax Deductible?
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One response to “Is Long Term Care Insurance Payments Tax Deductible?”
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Eligible premiums paid for tax-qualified long term care insurance can be applied toward meeting the 7.5% “floor” for medical expense deductions on your federal income tax return. The amount of eligible long term care premium that can be applied to the 7.5% floor depends on your age. The IRS publishes a table and adjusts the amount for inflation.
The benefit payments from a tax-qualified long term care insurance policy are not considered taxable income to the recipient, up to a per diem limit. The per diem limit, which is adjusted annually for inflation, is $320 for 2013.
The preceding is for general information and planning purposes only and may not be relied upon as tax advice. You must consult with a tax adviser for more as it applies to your situation.
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