IRS Issues Long-Term Care Premium Deductibility Limits for 2019

The Internal Revenue Service (IRS) will have increased amounts taxpayers can deduct for paying for long-term care insurance, if the policies are deemed qualified, for the 2019 tax .

The premiums for these policies are tax deductible to the extent that they, along with other unreimbursed medical expenses, exceed 7.5% of the insured’s adjusted gross income, and in 2019 it will revert to 10%. There is a limit on how large a premium can be deducted, depending on the age of the taxpayer at the end of the year.

To be qualified, long-term care policies issued on or after January 1, 1997, must adhere to certain requirements, including that the policy must offer the consumer the options of “inflation” and “nonforfeiture” protection, although the consumer can choose not to purchase these features. Policies purchased before January 1, 1997, will be grandfathered and treated as qualified if they have been approved by the insurance commissioner of the state in which they are sold.

See IRS Issues Long-Term Care Premium Deductibility Limits for 2019, Elder Law Answers, November 27, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.