A: Long-term care insurance premiums are considered a medical expense. Consider these tax facts:

Tax Advantages

2015 Federal Tax Deductibility Limits

Long-term care insurance premiums are considered a medical expense. For individuals who itemize income tax deductions, medical expenses are deductible to the extent they exceed 7.5% of the adjusted gross income. The premium deduction is determined annually based on the individualís age (see chart below). Benefits paid to an individual under a tax-qualified Long-Term Care Insurance plan may be excluded from taxable income.

Maximum Deduction for Qualified Long-Term Care Insurance Premiums Under Code 213(d)(10)

Age

Deduction

40 or less $370
More than 41 but no more than 50 $700
More than 51 but no more than 60 $1460
More than 61 but no more than 70 $3720
More than 71 $4660

2015 State Tax Credit

In New York State, you may be eligible to receive a 20% tax credit on tax qualified Long-Term Care insurance premiums according to the State's tax guidelines.

Tax Advantages (Employer/Employee)