Yes, many long term care insurance premiums can be deducted on income tax as a medical expense. The plans must be qualified LTCI plans.
The Long Term Care Federal Tax Deductible Limits for 2013 are itemized on IRS Revenue Procedure: 2012-41. These limits are age based.
Here are how some of the deductions work.
1) Working for someone else: Only the portion of total medical expenses that exceeds your adjusted gross income by 7.5% can be deducted, using Schedule A on your tax return.
If your employer pays the full LTCI premium, your employer may deduct the total expense.
2) Self employed: The entire premium of you, spouse and dependents (up to federal age based limits) can be deducted on line 29 of tax form 1040.
3) C Corporation: 100% of premium is deductible for employee, spouse and dependents with no age based limits on premium.
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The Long Term Care Federal Tax Deductible Limits for 2013 are itemized on IRS Revenue Procedure: 2012-41. These limits are age based.
Here are how some of the deductions work.
1) Working for someone else: Only the portion of total medical expenses that exceeds your adjusted gross income by 7.5% can be deducted, using Schedule A on your tax return.
If your employer pays the full LTCI premium, your employer may deduct the total expense.
2) Self employed: The entire premium of you, spouse and dependents (up to federal age based limits) can be deducted on line 29 of tax form 1040.
3) C Corporation: 100% of premium is deductible for employee, spouse and dependents with no age based limits on premium.
4) State income tax deductions and/or credits
5) Paying premium with HSA.