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Did You Know That Your Long Term Care Insurance Premium Payments May Be Tax Dedutible? (Fall 2008) << Back
by C. Glen Higuchi, JD, CPA
 
If your policy is considered a Tax Qualified (TQ) Policy, you may be able to deduct all or a portion of your Long Term Care Insurance (LTCI) premium payments.  If you do not know if your LTCI policy meets the requirements, please contact us or your tax advisor.
 
The amount you can deduct depends upon whether you make an individual purchase of a policy, are part of an employer-pay contribution arrangement, or are self-employed.
 
Individuals who purchase a TQ LTCI policy can include those premium payments as itemized medical expenses.  How much you can deduct is subject to IRS tax guidelines.
 
If an employer pays the premium on behalf of any of its employees, the company is entitled to take a 100% deduction as a business expense, and is non-taxable to the employee.  The employer can also be selective of the employees it elects to cover.
 
A self-employed individual can deduct 100% of certain eligible TQ LTCI premium amounts.  Generally, the benefits received from are non-taxable and excluded from taxable income.
 
Please call us for further explanations and examples of how LTCI premiums are treated.  You should seek advice based on your particular circumstances from an independent tax advisor.
   
   
   
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AHTKY Insurance Agency, LLC
1451 W. Artesia Blvd, Suite A, Gardena, California 90248
CA License: 0C46036