An increasingly popular hybrid product combines life insurance with long-term care coverage and offers buyers solutions to a...Read more
Don't Forget About Deducting Your Long-Term Care Insurance Premiums
- January 28th, 2016
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. (For taxpayers 65 and older, this threshold will be 7.5 percent through 2016.) 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 2016:
- 40 or less: $390
- 41 - 50: $730
- 51 - 60: $1,460
- 61 - 70: $3,900
- More than 70: $4,870
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
Needham Mitnick & Pollack, PLC
Susan Pollack served as Chairperson of the Falls Church Senior Citizens Commission from 1997 to 2011 and was on the Executive Board of the Falls Church Education Foundation. She has also served on the Board of Directors of the Alzheimer’s Association of the National Capital Area and is a member of the Arlington B...
Hale Ball Carlson Baumgartner Murphy PLC
Loretta Morris Williams is a certified elder law attorney by the National Elder Law Foundation. Ms. Williams was admitted to the Council of Advanced Practitioners, National Academy of Elder Law Attorneys (NAELA) in 2012. She serves as President of the Virginia Academy of Elder Law Attorneys. Ms. Willia...
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 $1,460. The wife can apply $730. As each spouse gets older, the amount increases, making it more likely that they will reach the 10 percent threshold (7.5 if they are 65 or older).
For more information about deducting medical expenses, click here.
For more information about long-term care insurance, click here.
Last Modified: 01/28/2016