Deductibility of Premium Payments
Individuals who purchase and pay for Tax-Qualified Long-Term Care Insurance policies for
themselves, their spouses, and their tax dependents may claim the premiums paid
as deductible personal medical expenses if the Individual itemizes his or her
taxes (See Internal Revenue Code (IRC) Sec. 213(a) and IRC Sec. 213(d)(1)(D)).
However, any TQ LTCI expenses are deductible only to the extent that the individual's
unreimbursed medical care expenses exceed 10% of the individual's adjusted gross income (AGI);
(7.5% for people age 65 and older through 2016).
Further, the amount of the Tax-Qualified
Long-Term Care Insurance premiums that may be deducted is
subject to the following dollar limits based on the insured's attained age
before the close of the tax year (IRC Sec 213(d)(10)).