Tax deductions for long-term care premiums
How much of your long-term care premiums you can deduct on your taxes once you hit the threshold depends on your age at the end of 2013. Credit: iStock
If you pay long-term care premiums, you may be missing a tax deduction.
Long-term care premiums are considered an individual medical expense by the IRS. They can be deducted, but only if they, along with other qualified medical deductions, exceed 10 percent of a taxpayer's adjusted gross income. If you are 65 or older, however, that threshold is reduced: You can deduct medical and dental expenses that are more than 7.5 percent of your adjusted gross income. Hitting the threshold also becomes easier when a person retires because income typically falls.
How much of your premiums you can deduct once you hit the threshold depends on your age at the end of 2013. Adults 70 or older can deduct up to $4,550 in premiums paid in 2013. Individuals
60 to 69 can deduct up to $3,640, according to the American Association for Long Term Care Insurance. For information on IRS medical deductions, go to bit.ly/irs-medical.