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Don't Forget About Deducting Your Long-Term Care Insurance Premiums
- March 5th, 2018
One of the incentives to buying a long-term care insurance policy is that the premiums are tax deductible. Unfortunately, many people are not taking advantage of this deduction.
Many types of medical expenses are deductible from your taxes--including long-term care insurance premiums. To claim the deduction, your medical expenses have to be more than 10 percent of your adjusted gross income. There is a limit on how large a premium can be deducted. The amount depends on the age of the taxpayer at the end of the year. The following are the deductibility limits in 2018:
- 40 or less: $420
- 41 - 50: $780
- 51 - 60: $1,560
- 61 - 70: $4,160
- More than 70: $5,200
The policies must also meet other criteria, such as offering inflation and other protections. For more information, click here.
Local Elder Law Attorneys in Ashburn, VA
Hale Ball Carlson Baumgartner Murphy PLC
Jean Galloway Ball is certified in Elder Law by the National Elder Law Foundation. She is a 1977 honors graduate of the National Law Center, George Washington University, and she did her undergraduate work at the University of California at Berkeley, graduating Phi Beta Kappa in 1971. She is admitted to practice in Vir...
Needham Mitnick & Pollack, PLC
Judith Mtinick is well known for acting as a guardian, conservator, trustee or agent on behalf of clients or by court appointment. This experience gives her a wide perspective and extensive practical knowledge that she uses when advising clients in drafting their planning documents. Her experience, as a court appointed...
The Law Firm of Evan H. Farr, P.C.
In practice since 1987, Fairfax Attorney Evan Farr is widely recognized as one of the leading Elder Law, Estate Planning, and Specials Needs attorneys in Virginia and one of foremost experts in the Country in the field of Medicaid Asset Protection and related Trusts. Evan Farr has been quoted or cited as an expert by n...
Often long-term care insurance premiums are what put taxpayers over the 10 percent threshold, enabling them to take the medical expense deduction. Suppose a husband and wife ages 55 and 49 both purchase policies. The eligible amount that the husband can include toward reaching the currently required 10 percent threshold is $1,560. The wife can apply $780. As each spouse gets older, the amount increases, making it more likely that they will reach the 10 percent threshold.
For more information about deducting medical expenses, click here.
For more information about long-term care insurance, click here.
Last Modified: 03/05/2018