- Long-term care expenses are included as medical expenses on your Federal 1040 Schedule A (Itemized Deductions). If you do not itemize your deductions, you cannot deduct long-term care expenses.
- If you do itemize, you can deduct both the costs of qualified long-term care services and the premiums you paid for qualified long-term care insurance.
- A qualified service is a necessary procedure, medical or non-medical (such as maintenance or personal care), that is both required by a chronically ill person and prescribed by a licensed physician.
- Qualified long-term care insurance contracts only provide coverage for long-term care services. To qualify, a contract must be guaranteed renewable, cannot pay out money without full surrender of the contract and cannot reimburse Medicare-eligible expenses.
- The amount of long-term care insurance premiums you deduct is limited. The maximum premium amounts allowed increase with your age, from a few hundred dollars at age 40 or younger to several thousand dollars if you're over age 70.
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