Monthly Archives: December 2015

It’s almost Tax Time: If you have long term care insurance remember to advise your Accountant

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2015 & 2016 TAX DEDUCTIONS FOR LONG TERM CARE INSURANCE PREMIUMS

Self-employed individuals can deduct tax-qualified long-term care insurance premiums as a trade or business expense.

They do not need to consider the 7.5% adjusted gross income threshold that limits individual deductions.  (IRC #162(1))

The tax deduction is allowed for the self-employed individual, for his or her spouse and other tax dependants according to each individual’s age based limit.
(Premiums can also be paid from HSAs)

Taxpayer’s Age At End of Tax Year – Deductible Limit
Age

2015

2016
40 or younger

$380

$390
41 to 50

$710

$730
51 to 60

$1,430

$1,460
61 to 70

$3,800

$3,900
71 or older

$4,750

$4,870

C-Corporations benefit from complete (100%) deductibility of tax-qualified long-term care insurance protection as a business expense similar to traditional health and accident insurance premiums.