Long Term Care Insurance Tax Deduction Eligibility


Beginning in 1996, the Government took another step to encourage Americans to purchase Long Term Care insurance with the of the Health Insurance Portability and Accountability Act of 1996, AKA HIPAA. was passed. HIPAA offers tax incentives to those who purchase a Tax-Qualified Long Term Care insurance policy, which is the most common form of policies sold today.

Tax Qualified Long Term Care Insurance premiums are treated as medical expense deductibles. Medical expenses can be deducted from the amount which exceeds 7.5 percent of their adjusted gross income. The amount of Long Term Care insurance premiums that can be claimed depends on the age of the insured. See the chart below to see the limit. Some states also may offer additional tax incentives. Click here to learn more.


Tax Deduction Limits for Long Term Care Insurance Premiums, 2016


Attained Age
Deduction Limit
40 or less
71 and older


Source: IRS

It is also important to check with a personal tax advisor to see how much you can deduct.