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.
|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|
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.