The cost of a long term care facility can be hefty for seniors even when they have long-term care insurance. That’s why it may help to know when the long-term care policy premiums qualify as a tax write-off.
For Federal income tax purposes, a qualified long-term care policy is considered health insurance. Thus, if you have a qualified individual policy, the premiums are treated as medical expenses and can be an itemized deduction on your tax return.
However, the deduction for medical costs is based on age. Amounts are listed below:
- For individuals who are 40 years old or under as of December 31, 2017, the maximum amount treated as a medical expense is $410.
- For ages 41 to 50, it is $770.
- For ages 51 to 60, it goes up to $1,530.
- Those 61 to 70 may deduct $4,090, and
- After that (71 and over) it goes up to $5,110.
Those numbers are adjusted annually for inflation. [Read more…]