Can I deduct long term care costs on my tax return?
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| You can deduct on your
tax return the costs of long term care for yourself, your
spouse, or your dependent if the services are required because of a chronic illness. Generally,
unreimbursed expenses that exceed 7˝% of Adjusted Gross Income are tax
deductible on your tax return. Your total long term
care costs for the tax year that you deduct on your tax return must be reduced by any reimbursement.
The chronically ill person must have been certified within the last 12 months by a
licensed health care practitioner that they are unable to perform, for a period of at
least 90 days, two or more of the following activities without substantial assistance:
 | eating |
| toileting |
| dressing |
| bathing |
| continence |
| transferring |
Services provided by a relative are only
tax deductible on your tax return if that relative is a licensed
professional. The tax deduction on your tax return for a qualified long-term care insurance policy's premium is limited.
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| Age |
Maximum Tax
Deductible Premium |
| Under 41 |
$320 |
| 41-50 |
$600 |
| 51-60 |
$1,190 |
| 61-70 |
$3,180 |
| Over 70 |
$3,980 |
Benefits paid by qualified long term care policies:
To the extent that they reimburse long term care expenses, benefits paid by
an indemnity type contract are tax free. Benefits paid by a per diem contract
are tax free up to $280 per day.
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Related tax
information about long term care |
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Tax Deductible Medical and Dental Expenses
Tax Deductible
Medical Savings Accounts
Tax Deductible Nursing Home Expenses
Itemized Tax Deductions Directory |
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IRS publications about this long term care:
For more information see IRS Publication
502, Medical and Dental Expenses. Also see
IRS Publication 17,
Your Federal Income Tax. |
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Ask Julian Block your IRS and tax questions! |
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