Question

I do not have any LTC Expenses yet but have paid premiums for 16 years. Are those premiums deductible?

Forum|Forum|5 years ago
February 1, 2021
1 reply
0 views

I have not accessed the Long Term Care insurance because I'm still in my home, not in care facility. I've continued to pay the premiums, are they deductible?

TurboTax Deluxe Online

T

ToddL99

Yes, Long Term Care insurance premiums are deductible, but that deduction is subject to limitations.

Medical Expenses limitation - Premiums for "qualified" long-term care insurance policies are tax deductible to the extent that they, along with other unreimbursed medical expenses (including Medicare premiums), exceed 7.5 percent of the insured's adjusted gross income.

"Non-qualfiied" policies - These tax deductions allowed by the IRS for long-term care insurance premiums are generally not available with so-called hybrid policies, such as life insurance and annuity policies with a long-term care benefit.

Limits on LTC Premium Deductibility - 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. Following are the deductibility limits for tax year 2020. Any premium amounts for the year above these limits are not considered to be a medical expense.

B

bs98909

How do you enter this in TurboTax Deluxe? I am guessing in Schedule A, but I do not see a good means to get to Schedule A in the Q&A easy format or the Form.

DawnC

Employee

You can enter your LTC premiums on Schedule A via the Medical expenses section. It will start with prescriptions and ask for all types of medical expenses. But LTC premiums have their own screen within that section.

Medical, dental, and vision expenses are reported on Schedule A and entered in the Deductions & Credits section.

With your return open, search for Schedule A and then select the Jump to link in the search results.
Answer Yes on the Did you spend more than $3,000 on medical expenses in 2020? screen.
Enter your medical expenses, starting with prescriptions, on the following screens.

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