Is there a credit for Long Term Care Insurance for 69 yr old?

Forum|Forum|5 years ago
March 12, 2021
1 reply
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Is there any type of tax benefits if I purchase a LTC insurance plan with monthly or annual payments?

Also, in your opinion, is it worth it for the cost for still only 65% of costs?

Thank you,

Ed

Best answer by RayW7

There is not a credit but premiums for qualified* long-term care insurance policies are deductible on your 2020 federal taxes (if you itemize) up to these per-person amounts. Like any other medical expense, you have to itemize to get the deduction.

$430 — under age 41 as of December 31, 2020
$810 — age 41–50 as of December 31, 2020
$1,630 — age 51–60 as of December 31, 2020
$4,350 — age 61–70 as of December 31, 2020
$5,430 — age 71 or higher as of December 31, 2020

Some states also have their own long-term care credit or deduction; when you do your state taxes, we'll let you know if your state offers tax breaks for long-term care.

*A qualified long-term care insurance policy is guaranteed renewable, has no cash surrender value, doesn't cover Medicare-reimbursed expenses, nor uses any refund to reduce future premiums (except in death or cancelation).

Is it worth the cost? This is a personal decision based on your individual circumstance.

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Where do I enter my long-term care premiums?