The cost of tax-qualified LTC insurance premiums (LTC premiums) are deductible for federal income taxes as LTC is considered a medical expense. For an individual who itemizes tax deductions, medical expenses are deductible to the extent that they exceed 10% of the individual's Adjusted Gross Income (AGI) (7.5% in 2018). The amount of the LTC premium treated as a medical expense is limited to the eligible LTC premiums and is based on the age of the insured individual. That portion of the LTC premium that exceeds the eligible LTC premium is not included as a medical expense.
Individual taxpayers can treat premiums paid for tax-qualified LTC insurance for themselves, their spouse or any tax dependents (such as parents) as a personal medical expense.
If you are self-employed, you can deduct 100 percent of premium amounts (up to the limit) you paid for long-term care insurance. Note that the policy must be "tax-qualified" to receive these benefits.
Investment products and services are offered through INFINEX INVESTMENTS, Inc. Member FINRA/SIPC. The Investment Center at South Shore Bank is a trade name of the Bank. Infinex and the bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.