Phillip G. Sinclair

Certified Public Accountant

1800 Judson Rd, Suite 300

Longview, Texas 75605

903-753-5871

Fax 903-753-5982

Long Term Care and Deductability of Long Term Care Premiums

Long term care insurance is a "planning tool" - You fund it, and you hope that you will never need it! Similar to homeowners and auto insurance, you don't get your money back - except there is one difference: The chance of a catastrophic homeowner's claim is 1 in 1200, catastrophic auto claim is only 1 in 240 - But the chances of utilizing your long term care insurance is about a 1 in 2 chance (50/50)! That's why you pay for it, because the chances of your using it are so high. Check out these free resources regarding Long Term Care Insurance Decision Assistance Center and LONG TERM CARE

Under current income tax laws, if you itemize deductions on your individual income tax return you can include a portion of long term care premiums in your medical expenses. Note that your total allowable medical expenses must exceed 7 1/2 percent of adjusted gross income before you can count any medical expenses towards your itemized deductions.

Under current law, the following schedule of long term care premiums are allowed to be counted as follows:

Attained Age Before Close of Year	Tax Year 2008	Tax Year 2009
40 or Less	$ 310	$ 320
More Than 40 But No More Than 50	$ 580	$ 600
More Than 50 But No More Than 60	$ 1,150	$ 1,190
More Than 60 But no More Than 70	$ 3,080	$ 3,180
More Than 70	$ 3,850	$ 3,980

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Last Updated 07/20/2009