The amount of money that tax-payers may deduct from their tax returns this year when purchasing long-term-care insurance or paying monthly policy premiums has been increased by the IRS. “Monthly premiums for long-term-care insurance policies for those 65 years old or younger may be deducted to the extent that they, along with other unreimbursed medical expenses, exceed 10% of the insured person’s adjusted gross income.” The age of the taxpayer at the end of 2016 is a factor in determining the higher deductible limits. “For eligible long-term-care premiums that may be included under medical care expenses—according to Section 213(d)(10) of the Internal Revenue Code—the 2016 deductible limit is $1,460 for people who are at least 50 years old but not more than 60, and $3,900 for those older than 60 but not over 70.”
See Juliette Fairley, Long-Term-Care Insurance Gets An Increase In 2016 Tax Deductible Limits, Financial Advisor, February 12, 2016.
