Susan E. Thomas CPA
Newsletter
Can I deduct premiums paid for long-term care insurance (LTCI)?

It depends on several factors. Your LTCI contract must be a qualified one, you must itemize deductions on Schedule A of IRS Form 1040, and the total of your medical expenses (including your LTCI deduction) must exceed 10 percent of your adjusted gross income (AGI). Qualified LTCI premiums are deductible as medical expenses (subject to the 10 percent of AGI floor) within certain limits, based on your age.

Note: The threshold to deduct medical expenses is 10 percent of AGI for 2019 (7.5 percent of AGI for 2018).

If you bought your policy before January 1, 1997, and it met the requirements of the state in which it was issued, it is automatically considered a qualified policy. LTCI contracts issued subsequently are only considered qualified for a tax deduction if they meet certain federal standards. In 2019, qualified LTCI premiums are deductible as medical expenses (subject to the 10 percent of AGI floor) within the following limits, based on your age at the end of the tax year:

Age:

Limit on Deduction:

40 or less

$420 (the same as in 2018)

41-50

$790 (up from $780 in 2018)

51-60

$1,580 (up from $1,560 in 2018)

61-70

$4,220 (up from $4,160 in 2018)

71 and older

$5,270 (up from $5,200 in 2018)

For more information, consult a tax professional.



Prepared by Broadridge Investor Communication Solutions, Inc, Copyright 2011