Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax and technical questions posed by producers.  Here’s the question of the day.

Question: Are long term care insurance premiums paid by an individual tax deductible from a federal income tax perspective?

Answer: Possibly, but only for certain taxpayers, and the deduction may be limited.

Long term care premiums are potentially deductible as a medical expense.  Medical expenses are deductible for taxpayers in 2011

• If the taxpayer itemizes deductions, and
• To the extent all deductible medical expenses exceed 7.5% of adjusted gross income.

The amount of the premium paid for long term care insurance that may be considered a medical expense is limited based on the taxpayer’s age.  For example, for a 63 year old taxpayer in 2011, the maximum long term care premium potentially deductible is limited to $3,390.

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