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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
The Estate Planning & Elder Law Firm PC
Bill founded The Estate Planning & Elder Law Firm, P.C. in 1994. Bill limits his practice to the areas of estate planning and administration, incapacity planning, Medicaid, asset protection planning, and elder law. He is one of (15) fifteen attorneys practicing in Virginia, Maryland and the District of Columbia, ce...
Ron M. Landsman, P.A.
Ron M. Landsman has been practicing elder law since 1983, before it was known as elder law, originally with Landsman and Laster, Washington, D.C., then Landsman, Eakes and Laster, also in Arlington, VA, and since 1990 in his own practice in Montgomery County, Maryland. He has been among the most active members of the...
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...
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