Specialist, LTCi, DI, Annuities, Life, Designs In Life, LLC, Utah
Long-term care premiums may be deductible on both the state and federal level as allowed in the IRS 1040 tax return and the state income tax return. There is a formula that changes annually that reflects the amount of premium that can be counted as deductible. However, there have been changes to the amount of allowable medical expenses that can be deducted since the inception of the PPACA.
Long-term care benefits are not taxable as regular income as long as the policy is clearly indicated "tax-qualified". Most policies sold today are tax-qualified and benefits paid from them do not need to be reported as income on tax returns.
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Long-term care benefits are not taxable as regular income as long as the policy is clearly indicated "tax-qualified". Most policies sold today are tax-qualified and benefits paid from them do not need to be reported as income on tax returns.