Is Long-Term Care Insurance tax deductible?
A. Yes. Long-Term Care Insurance is deductible as an itemized deduction on Schedule A. There are annual limitations based on your age. For 2009, the following apply: Under 40-$320. Age 41-50, $600. Age 51-60, $1,190. Age 61-70, $3,180. Age 71 and up, $3,98. Benefits are generally tax free unless the amount received exceeds actual expenses. In that case, the excess would be taxable. Beyond the tax implications, the economics of long-term care insurance should be thoroughly analyzed before purchasing.
A. Yes. Long-Term Care Insurance is deductible as an itemized deduction on Schedule A. There are annual limitations based on your age. For 2010, the following apply: Under age 40-$330. Age 41-50, $620. Age 51-60, $1,230. Age 61-70, $3,290. Age 71 and up, $4,110. Benefits are generally tax free unless the amount received exceeds actual expenses. In that case, the excess would be taxable. Beyond the tax implications, the economics of long-term care insurance should be thoroughly analyzed before purchasing.
