Under current federal income tax law, you may treat your long-term care insurance premiums as a medical expense, subject to certain
limitations. You may deduct premiums (subject to certain limits) paid for tax-qualified long-term care insurance as well as out-of-pocket long-term
care expenses-such as nursing home costs paid for a dependent parent-if your total medical expenses exceed 7.5% of your adjusted gross income.
Limits on the deductibility of premiums depend on the age of the person insured and are adjusted annually, based on the medical care component
of the Consumer Price Index.
| Long-Term Care Insurance Premium Deduction Limits |
| Age before close of tax year |
2005 Tax Year |
2006 Tax Year* |
| 40 or younger |
$270 |
$280 |
| 41 to 50 |
$510 |
$530 |
| 51 to 60 |
$1,020 |
$1,060 |
| 61 to 70 |
$2,720 |
$2,830 |
| 71 or older |
$3,400 |
$3,530 |
*For calendar year 2006, the stated dollar amount of the per diem limitation under 7702B(d)(4), regarding periodic payments received under
a qualified long-term care insurance contract or periodic payments received under a life insurance contract that are treated as paid by reason
of the death of a chronically ill individual, is $250.
This information is not a substitute for expert tax advice. Please contact a tax professional for complete details.
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