The Internal Revenue Services is increasing the amount taxpayers can deduct from their 2015 taxes as a result of buying Long Term Care Insurance.
Premiums for “qualified” long term care insurance policies are tax deductible to the extent that they, along with other unreimbursed medical expenses, exceed 10 percent (7.5% for those age 65 or older) of the insured’s adjusted gross income.However, 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:
| At the end of the year | 2014 | 2015 |
| Ages 40 or less | $ 370 | $ 380 |
| Ages 41 to 50 | $ 700 | $ 710 |
| Ages 51 to 60 | $ 1,400 | $ 1,430 |
| Ages 61 to 70 | $ 3,720 | $ 3,800 |
| Ages 71 or more | $ 4,660 | $ 4,750 |
There are more liberal rules for the self-employed, partnerships and corporations. Please give us a call for a further explanation if this applies to you.