Deducting Long Term Care Insurance Premiums on my Federal Income Tax Return

You may deduct long-term care policy premiums on your federal income tax return because it is considered health insurance. Premiums paid for qualified policies are treated as medical costs for federal itemized medical expense deduction purposes. However, the maximum amount that can be treated as a medical expense for 2013 is the lower of the actual premium amount paid or the age-based limit shown in the following table. These age-based limits are adjusted annually for inflation. As such, they can help you exceed the applicable adjusted gross income (AGI) hurdle. Beginning in 2013 if you are under 65 years old, your medical expenses have to exceed 10% of your adjusted gross income to be deducted.

Age at 12/31/13   |    Max Amount Treated as Medical Expense

40 and under                             $360
41 to 50                                      $680
51 to 60                                      $1,360
61 to 70                                      $3,640
Over 70                                      $4,550

If you need help preparing your federal or state income taxes please contact Gregory J. Spadea of Spadea & Associates, LLC at 610-521-0604, located in Ridley Park, Pennsylvania.

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