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“The Deductibility of Long-Term Care InsuranceSpecific type of insurance policy designed to offer financial support to pay for necessary long-term care services. Premiums”
As a courtesy, the Partnership is providing you important information concerning the deductibility of long-term careCare given to someone who can no longer perform activities of daily living. insurance premiums.
If, for a taxable year, you itemize your deductions on Form 1040, Schedule A (PDF), you may be able to deduct expenses you paid that year for medical and dental care for yourself, your spouse, and your dependents. You may deduct only the amount by which your total medical care expenses for the year exceed 7.5% of your adjusted gross income.
IRS Publication 502, Medical and Dental Expenses, contains additional information on medical expenses including who will qualify as your dependent for purposes of the deduction and how you figure and report the deduction on your return.
Medical care expenses include the insurance premiums you paid for policies that cover medical care or for a qualified long-term care insurance policy covering qualified long-term care services. If you are an employee, medical expenses do not include that portion of your premiums treated as paid by your employer under its sponsored group accident or health policy or qualified long-term care insurance policy.
Eligible Long-Term Care Premiums. For taxable years beginning in 2014, the limitations under § 213(d)(10), regarding eligible long-term care premiums includible in the term "medical care," are as follows:
Attained Age Before the Close of the Taxable Year | Limitation on Premiums |
---|---|
40 or less | $200 |
More than 40 but not more than 50 | $375 |
More than 50 but not more than 60 | $750 |
More than 60 but not more than 70 | $2,000 |
More than 70 | $2,500 |
For additional information, visit https://www.irs.gov/taxtopics/tc502.html, or contact your tax preparer.