The IRS has announced that the amount taxpayers can deduct from their 2015 taxes for buying long-term care insurance has been increased.
Premiums for so-called “qualified” long-term care policies are deductible as long as they, along with other unreimbursed medical expenses, including Medicare premiums, exceed 10 percent of the insured person’s adjusted gross income, or 7.5 percent for those age 65 and older.
The premiums are deductible for the taxpayer, his or her spouse and other dependents, although the rules for the self-employed are somewhat different.
But there is a limit on how large a premium can be deducted, according to a story on elderlawanswers.com.
The maximum deduction varies by age. The cap for those age 40 or less is now $380, up from $370. The cap for those over age 70 has been increased to $4,750, up from $4,660.