The amount you can deduct on your taxes as a result of buying long-term care insurance has been increased by the IRS for 2015.
If you itemize your deductions, you can generally claim a deduction if your premiums, together with your other unreimbursed medical expenses, amount to more than 10% of your adjusted gross income (or 7.5% if you’re 65 or older).
The maximum amount of the premiums you can deduct each year depends on your age at the end of the year:
- Maximum deduction
- 40 or younger
- 70 or older
For policies issued in 1997 or later, the premiums are deductible so long as the policies meet certain requirements, such as that they offer “inflation protection” and “non-forfeiture protection.” (You don’t have to actually choose these options, but the policy has to offer them.)
For policies issued before 1997, the premiums are deductible if the policies were approved by the state insurance commissioner.