Answer: It depends on several factors.
Your LTCI contract must be a qualified one, and the total of your medical
expenses (including your LTCI deduction) must exceed 7.5 percent of your
adjusted gross income (AGI). Qualified LTCI premiums are deductible as medical
expenses (subject to the 7.5 percent of AGI floor) within certain limits, based
on your age.
Note: Starting in 2013, the threshold
to deduct medical expenses will be raised from 7.5 percent of adjusted gross
income to 10 percent. The threshold increase will be delayed until 2017 for
those age 65 or older. If you bought your policy before January 1, 1997, and it
met the requirements of the state in which it was issued, it is automatically
considered a qualified policy. LTCI contracts issued subsequently are only
considered qualified for a tax deduction if they meet certain federal
standards. In 2012, qualified LTCI premiums are deductible as medical expenses
(subject to the 7.5 percent of AGI floor) within the following limits, based on
your age at the end of the tax year. For more information, consult a tax
professional.
|
Age:
|
Limit on
Deduction:
|
|
40 or less
|
$350 (up
from $340 in 2011)
|
|
41-50
|
$660 (up
from $640 in 2011)
|
|
51-60
|
$1,310 (up
from $1,270 in 2011)
|
|
61-70
|
$3,500 (up
from $3,390 in 2011)
|
|
71 and
older
|
$4,370 (up from
$4,240 in 2011)
|
