Can I Deduct Premiums Paid for Long-Term Care Insurance?

Long-term care insurance typically becomes a consideration for people in their 50s and 60s after they experience helping out with their aging parent's care and realizing the substantial hit it can make on their life savings. But one of the most overlooked aspects of long-term care insurance is the potential tax benefits that can be had. When considering long-term care insurance, understanding the potential tax benefits and how they pertain to your own financial situation can help you make a more informed decision. More specifically, I discuss: How does the potential deduction for long-term care insurance work? What are the limitations when trying to deduct qualified long-term care insurance premiums? How might changes in tax law allow for or increase your long-term care premium deduction? What types of long-term care insurance are considered "qualified"? Can you deduct premiums paid for hybrid or asset based long-term care insurance? Can business owners get a deduction for long-term care insurance premiums paid? When can't you deduct premiums paid for long-term care insurance? Resources From The Episode: Retired-ish Newsletter Sign-Up Get Show Notes Here   Key moments: (03:02) Are Long-Term Care Insurance Premiums Deductible? (05:33) Deducting Medical Expenses Above 7.5% Adjusted Gross Income (06:14) Long-Term Care Premium Deduction Limits By Age (10:53) Issues With Itemizing Deductions & The SALT Cap (13:24) What Constitutes a "Qualified" Long-Term Care Policy (15:31) Deducting Hybrid or Asset Based LTC vs. Traditional Long-Term Care Insurance (19:19) Deducting Long-Term Care Premiums for Business Owners (22:19) When Can't You Deduct Your Long-Term Care Premiums?