Can I deduct Long Term Care (LTC) insurance premiums?
A.6. Yes, but with limitations. Although all medical expenses (including health and dental insurance premiums), when taken together as a total, must exceed 7.5% of your adjusted gross income before being allowed as an itemized deduction on the federal Schedule A, long term care insurance premiums are limited as to the amount includible in the total medical expense amount. For those Age 40 or younger, only $290 of LTC premiums are allowed. Ages 41-50 can deduct $550, Ages 51-60 can deduct $1,110, Ages 61-70 can deduct $2,950, and Ages 71 and older can deduct $3,680 of LTC premiums as part of their medical expenses. These amounts are for 2007 and are adjusted for inflation each year. Q.7. What are the standard mileage rates?A.7. The optional standard mileage rates are used by taxpayers not wanting to track actual vehicle expenses for vehicles used for business, medical, moving or charitable purposes. For 2008, the business rate is 50.5 cents per mile from 1/1/08 through 6/30/08 and 58.5
