IRS increases 2021 tax deduction limits for long-term care insurance. The 2021 deductible…
|Attained age before close of tax year 2020|
|40 or less||$450|
|More than 40 but not more than 50||$850|
|More than 50 but not more than 60||$1,690|
|More than 60 but not more than 70||$4,520|
|More than 70||$5,640|
Individual taxpayers are allowed to deduct the cost of their policy (and that of their spouse) as part of their medical expense deduction to the extent that their medical expenses exceed 10% of their adjusted gross income. Those who are self-employed or own an LLC, S Corp, or C Corp have more extensive deductions. Ask for our Tax Guide. Tax-qualified long-term care insurance benefits are generally tax-free.