Long Term Care (LTC) Premium Deduction
Long Term
Care
The deduction of tax qualified long-term care insurance policies is increased each year due to inflation. Thus, the long-term care insurance deduction can be considered a retirement subsidy. However, you need to check if your newly purchased long-term care insurance policies offers the tax deductible opportunity. See other tax deduction including medical expense deductions.
When you prepare and e-file your next tax return, enter the qualified long term care premium dollar amount during the tax interview and the tax app will show it on Schedule A of your tax return. Review instructions for Form 1099-LTC.
Long Term Care Deduction Limitations
Each year, the LTC or Long Term Care insurance deduction limits are evaluated and often adjusted for inflation- see the amounts in the tables below. As an example, a married filing jointly couple age 70 or older who both have the right kind of long-term care insurance policy can deduct as much as $11,920. Important: This is only available to tax-qualified health-based long-term care insurance policies.
If you require long term care, it might be tax deductible. This long-term care must be medically necessary, e.g. for preventive, therapeutic, treating, rehabilitative, personal care, or other services. See Medical and Dental Expenses (Including the Health Coverage Tax Credit) for a full list of qualifying services. Generally, the cost of meals and lodging at an assisted-living facility or nursing home is included if the reason for being there is to get qualified medical care.
In comparison, linked-benefit Long Term Care or LTC policies, such as life insurance and/or annuity policies with long term care benefits, in most cases DO NOT qualify for the insurance or premium tax deduction.
Generally, if a taxpayer purchases the Long Term Care insurance before retirement, the tax deduction does not apply or the taxpayer does not reach the threshold to deduct the LTC premium. In comparison, after working on the start of retirement, taxpayers can benefit more likely from this tax deduction. Again, check with the insurance carrier to be certain about this tax deduction.
Similar to the tax deduction, like the deduction for long-term-care services, the long term care insurance premium is an itemized deduction for medical expenses. Check on the given threshold by tax year, age, etc.:
Attention: If you are self-employed, you might be able to deduct premiums paid for long-term-care insurance as an adjustment to income without having to itemize.
Tax Deduction Limits for Long Term Care Insurance
The table here is for the current year due by this year's Tax Day. Use these figures to plan your return - prepare and e-file on eFile.com and get the most out of your refund.
Current Year, 2023 LTC Deduction
Use the rates below to plan for your 2023 Taxes. Note that the married deduction is increased only if both spouses have a qualifying long-term health insurance premium.
71 or more
$5,960
$11,920
2022 LTC Deduction
Use the rates below to file for your 2022 Taxes. Note that the married deduction is increased only if both spouses have a qualifying long-term health insurance premium.
71 or more
$5,640
$11,280
2021 LTC Deduction Limits
The table below shows the increased amounts for 2021. Note that the married deduction is increased only if both spouses have a qualifying long-term health insurance premium.
71 or more
$5,640
$11,280
Previous Year Deduction Amounts
The table below shows the rates by tax year and age for previous years - see all back tax resources, such as forms and calculators.
Age 40 or less
2020: $430
2019: $420
Age 41-50
2020: $810
2019: $790
Age 51-60
2020: $1,630
2019: $1,580
Age 61-70
2020: $4,350
2019: $4,220
Age 71 or more
2020: $5,430
2019: $5,270
Long term care insurance premiums are only deductible if your total unreimbursed medical expenses exceed 7.5% of your AGI. This includes your premiums plus any other medical expenses for which you had to pay out of pocket. If your insurance premium plus your medical expenses is significant enough, the eFile Tax App will generate the deduction forms for you when you prepare your taxes on eFile.com. See how online tax preparation and e-filing works.
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