“The tax deductibility of tax-qualified long-term care insurance premiums is an incredible benefit potentially for many aging Americans,” states Jesse Slome, director emeritus of the American Association for Long-Term Care Insurance (AALTCI).

“The 2026 deductible limits are significant and few people, especially small and mid-sized business owners, are aware that premiums paid for long-term care insurance may be tax deductible.”

The just announced 2026 limit for an individual age 70 or more is $6,200, according to AALTCI. This represents a 3 percent increase from the current 2025 limit. “Many policies are purchased by couples which means they could deduct up to $12,400 next year depending on their age,” Slome explains.

Only long-term care policies that meet the federal government’s tax-qualified requirements qualify for a potential tax deduction, the long-term care insurance expert notes. “Most of the linked benefit or hybrid life insurance policies, the ones more popular today do not qualify for a possible tax benefit,” Slome explains.

“Two types of individuals can gain the most benefit from the IRS deductions,” Slome adds. “First business owners, who may be able to deduct the full cost of their insurance protection. They could even benefit by having a paid-in-full policy when they reach retirement age.”

In addition, people who have retired from jobs can benefit. “That’s when income levels enable more people to reach the required health expense threshold to make premiums deductible,” Slome acknowledges. “That potential tax deduction can be a huge benefit after retirement and something seniors should take into consideration when looking into their long-term care protection options.”

2026 Maximum Deduction Limits Long-Term Care Insurance

The following are the new 2026 deductible limits per-individual (2025 limits in brackets):

Attained Age Before Close of Taxable Year     2026 Limit    (2025)
40 or less                                                                     $500        ($480)
More than 40 but not more than 50                      $930        ($900)
More than 50 but not more than 60                   $1,860    ($1,800)
More than 60 but not more than 70                   $4,960    ($4,810)
More than 70                                                            $6,200   ($6,020)

To learn more about long-term care insurance and see a history of tax deductibility limits, go to https://www.aaltci.org/long-term-care-insurance/learning-center/tax-for-business.php.

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2024 Tax Deductible Limits Long-Term Care Insurance

The IRS has announced decreased 2024 tax deductible limits for long-term care insurance according to the American Association for Long-Term Care Insurance.

“This is a significant change in practice after yearly increases,” states Jesse Slome, director of the American Association for Long-Term Care Insurance. “The 2024 deductible limits are still significant and few people, especially business owners, are aware that premiums paid for long-term care insurance may be tax deductible.”

The just announced 2024 limits for an individual age 70 or more is $5,880, according to AALTCI. The 2023 maximum deductible limit for that age band is $5,960.

“This is still a significant tax deduction,” Slome explains. “Most policies are purchased by couples which means they could deduct up to $11,760 next year depending on their age.”

Only long-term care policies that meet the federal government’s tax-qualified requirements qualify for a potential tax deduction, the long-term care insurance expert notes. “Most of the linked benefit or hybrid life insurance policies, the ones more popular today do not qualify for a possible tax benefit,” Slome notes.

“Two types of individuals can gain the most benefit from the IRS deductions,” Slome adds. “First business owners, who may be able to deduct the full cost of their insurance protection and have a paid-in-full policy when they reach retirement age.”

In addition, people who have retired from jobs can benefit. “That’s when income levels enable more people to reach the required health expense threshold to make premiums deductible,” Slome acknowledges. “That potential tax deduction can be a huge benefit after retirement and something seniors should take into consideration when looking into their long-term care protection options.”

2024 Maximum Deduction Limits Long-Term Care Insurance

The following are the new 2024 deductible limits per-individual (2023 limits in brackets):

Attained Age Before Close of Taxable Year     2024 Limit (2023)
40 or less                                                                   $470  ($480)
More than 40 but not more than 50                   $880  ($890)
More than 50 but not more than 60                   $1,760  ($1,7,90)
More than 60 but not more than 70                   $4,710  ($4,770)
More than 70                                                            $5,880  ($5,960)

The American Association for Long-Term Care Insurance advocates for the importance of planning and supports insurance and financial professionals who provide long-term care financing solutions.  To see prior year’s long-term care insurance tax deductible limits, visit the organization’s website (https://www.aaltci.org/tax) or call the organization at 818-597-3227 to connect with a long-term care insurance professional who can provide no-obligation and cost comparisons.

Find local Medicare Advantage agents listed on the American Association for Medicare Supplement Insurance’ directory.

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“Tax deductibility for your long-term care insurance is a great subsidy especially after retirement, but only a small segment of newly purchased long-term care insurance policies offer the tax deductible opportunity,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).

The Internal Revenue Service just announced the increased limits for tax deductibility of long-term care insurance premiums.  According to IRS Revenue Procedure 2019-44, a couple age 70 or older who both have the right kind of long-term care insurance policy can deduct as much as $10,860 in 2020.  The 2019 limit is $10,540.
“The special tax advantages allowed by the IRS are only available with tax-qualified health-based long-term care insurance,” Slome explains.  “Many more individuals today are buying linked-benefit LTC policies such as life insurance and annuity policies with a long-term care benefit but these almost never will qualify for premium tax deductibility.”
The tax deductibility often does not come into play when the individual or the couple is first purchasing insurance protection.  “Before retirement most people can’t reach the threshold whereby long-term care insurance premiums are going to be tax deductible,” Slome acknowledges.  “But after you stop working the likelihood you can benefit from this tax advantage increases significantly, something to keep in mind when considering what option is best for you.”
The following are the new 2020 deductible limits (2019 in brackets):

2020 Tax Deductible Limits Long-Term Care Insurance

Premiums paid for traditional long-term care insurance are includable in the term ‘medical care’.   The following are the just announced 2020 limits (per-individual):

Attained Age Before Close of Taxable Year         2020 Limit (2019)
40 or less                                                                    $430  ($420)
More than 40 but not more than 50                     $810  ($790)
More than 50 but not more than 60                     $1,630  ($1,580)
More than 60 but not more than 70                     $4,350  ($4,220)
More than 70                                                             $5,430  ($5,270)

The American Association for Long-Term Care Insurance advocates for the importance of planning and supports insurance and financial professionals who provide long-term care financing solutions.  To see prior year’s tax deductible limits, visit the organization’s website (www.aaltci.org/tax) or call the organization at 818-597-3227 to connect with a long-term care insurance professional who can provide no-obligation and cost comparisons.

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Long-Term Care Awareness Month logo 2017

October 23, 2017 -  Los Angeles, CA — Tax deductible limits for traditional long-term care insurance premiums paid in 2018 have been increased according to the American Association for Long-Term Care Insurance.

“The tax deductibility of some tax-qualified long-term care insurance provides significant value to consumers especially after they retire” explains Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).   “The special tax advantages are only available with tax-qualified health-based long-term care insurance though it would be valuable one day to see them added to linked-benefit products such as life insurance or annuity policies that can provide a future long-term care benefit.”

According to Slome, the vast majority of new long-term care insurance policies purchased today are combo products.  “Only traditional long-term care insurance policies have the benefit of potentially being tax-deductible to an individual,” Slome acknowledges.  “After retirement when a person’s income often declines, the tax deductions for your premium costs can take on a significant added value.”

Premiums paid for traditional long-term care insurance are includable in the term ‘medical care’.   The following are the just announced 2018 limits:

Attained Age Before Close of Taxable Year         2018 Limit
40 or less                                                                   $420
More than 40 but not more than 50                           $780
More than 50 but not more than 60                          $1,560
More than 60 but not more than 70                          $4,160
More than 70                                                            $5,200

“Our nation needs to have more Americans saving for retirement and also having a plan to pay for the very real risk of needing long-term care,” Slome adds.  “A 70-year old couple has the potential to deduct over $10,000 each year and that should give one real pause to reflect on the value of planning while you can still health-qualify for this protection.”

The American Association for Long-Term Care Insurance advocates for the importance of planning and supports insurance and financial professionals who provide long-term care financing solutions.  To see prior year’s tax deductible limits, visit the organization’s website (www.aaltci.org/tax) or call the organization at 818-597-3227 to connect with a long-term care insurance professional who can provide no-obligation and cost comparisons.

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Jesse Slome, long term care insurance expert

October 21, 2015.  Los Angeles, CA — The American Association for Long Term Care Insurance, a national trade group, announced approval of increased tax deductions for long term care insurance policies purchased in 2016.

“This is outstanding news for millions of Americans who own or are considering long-term care insurance,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance   The increase amounts to about 2.5 percent compared to the prior year.

“Tax advantaged long term care insurance remains one of the few remaining significant tax-savings benefits especially meaningful for small business owners,” Slome explains.  “While deductions may not apply for individuals who are still working, they often can be taken during retirement when income stops and medical expenses often occur.”

The 2015 and 2016 deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:

Attained Age Before Close of Taxable Year         2015                                      2016

40 or less                                                              $380                                      $390
More than 40 but not more than 50                      $710                                      $730
More than 50 but not more than 60                      $1,430                                   $1,460
More than 60 but not more than 70                      $3,800                                  $3,900
More than 70                                                       $4,750                                   $4870

Source:  IRS Revenue Procedure 2014-61 (2015 limits) and 2015-53 (2016 limits)

In addition, according to Slome, the per-diem limitation under Section 7702B(d)(4) for periodic payments received under a qualified long term care insurance contract for 2015 increases to $340 (the 2014 limit was $330).

The American Association for Long Term Care Insurance is the national association serving insurance and financial professionals who provide long-term care financing solutions.  To learn more about long term care insurance tax deductions click the link.

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In addition, according to Slome, the per-diem limitation under Section 7702B(d)(4) for periodic payments received under a qualified long term care insurance contract have been increased for 2014 to $330 (the 2013 limit is $320).
The American Association for Long Term Care Insurance is the national association serving insurance and financial professionals who provide long-term care financing solutions.  A complete explanation of long term care insurance tax deduction limits and rules for individuals and business owners can be found on the Association’s website.  Consumers interested in a no obligation long term care insurance cost comparison can call the Association at (818) 597-3227 or request an online appointment with one of the organization’s designated long term care insurance specialist members.

The post 2014 Long Term Care Insurance Tax Deductions Announced appeared first on American Association for Long Term Care Insurance.

“Long term care insurance premiums can be a tax deductible expense and we believe a percentage of seniors neglect to take advantage of the deductibility,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group.  “After retiring income typically drops and medical and health expenses increase to a point where premiums for long term care insurance can be deductible something people could mistakenly overlook.”

According to the Association, the Federal government and a number of states offer tax incentives as a way of encouraging more individuals to take personal responsibility for future long term care needs.  “For 2012, the maximum an individual could deduct is $4,370 or $8,740 for a couple where both spouses are insured,” Slome notes. “They may not have been able to capitalize on the deductibility during their working years when income precluded reaching the allowable medical expense ratio but after retiring it’s not all that difficult to achieve.”

Slome, who has authored The Guide To Tax-Qualified Long Term Care Insurance, a publication that has been distributed to over two million consumers, believes the tax deductibility of long term care insurance is one of the best-kept tax reduction strategies.  “That is especially true for self-employed individuals and those who own and operate small businesses where the cost of insurance may be fully tax deductible as a normal business expense,” Slome adds.  “This is one of the last ways an individual can derive a benefit for themselves and a tax deduction to boot.”

The national long term care insurance expert notes that the tax deductible limits are increased each year to keep pace with inflation.  “The 2013 maximum that a couple can deduct is $9,100 but most people will buy insurance protection that costs far less than this amount,” Slome admits.

Consumers seeking information on tax-advantaged long-term care insurance can find a designated professional via the organization’s website or should call the Association at (818) 597-3227.   Established in 1998, the Los Angeles, CA-based American Association for Long-Term Care Insurance is the national association serving insurance and financial professionals who provide long-term care financing solutions.

Don’t forget tax deductions for long term care insurance advises Jesse Slome, director of American Association for Long-Term Care Insurance

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“For taxable years beginning in 2013, the limitations have been increased,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI), the industry’s trade association.  “Tax advantaged long term care insurance remains one of the few remaining significant tax-savings benefits especially meaningful for small business owners.”

The deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are based on the taxpayers attained age before the close of the taxable year.  For those age 40 or less, the maximum deduction is $360 an increase from the 2012 amount ($350).  The maximum amount that may be deducted by an individual who is more than age 70 is $4,550, an increase from $4,370 in the prior year.

“The federal government and a growing number of states are offering deductions and in some cases even credits to encourage individuals to plan for the eventual need of costly long-term care,” Slome explains.

According to the just released IRS Revenue Procedure 2012, the deductible limits range from a low of $360 to as much as $4,550 per individual.  “The deductions are especially meaningful at older ages when it is likely a couple will have lower income and potentially other medical expenses necessary to meet minimum thresholds,” Slome explains.  “That said, people must buy long-term care insurance when they can still health qualify.  Tax deductions are a meaningful added plus to the potential of not having to depend on family members or spend your retirement income for care.”

For calendar year 2013, the per-diem limitation under Section 7702B(d)(4) for periodic payments received under a qualified long-term care insurance contract is $320 (the 2012 limit was $310).

Established in 1998, the American Association for Long-Term Care Insurance is the national association focused on creating heighten consumer awareness regarding the importance of planning and serving insurance and financial professionals who provide long-term care financing solutions.  A complete explanation of long term care insurance tax deduction limits and rules for individuals and business owners can be found on the Association’s website.

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According to the American Association for Long Term Care Insurance, the national trade organization, tax deductibility gives individuals and business owners one very important reason to consider ways to address future long term care needs.

“Americans are living well into their 80s, 90s and even longer when the likelihood of needing extremely costly long term care services is almost a guarantee,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group charged with creating awareness for long term care related issues.  “The  federal and state governments recognizes this and offers the tax incentives to encourage more people to plan.”

Individuals may be able to deduct long term care insurance premiums paid from their 2011 federal income taxes.  The federal levels are based on your age, Slome notes, ranging from $340 to $4,240 per-person and increase for new policies purchased in 2012.    Individuals face certain limitations that are not imposed on self-employed or corporations.  “These entities may able to make the full cost tax deductible,” Slome adds.

In addition to federal tax deductibility limits, a growing number of states now offer either tax deductions or tax credits to encourage state residents to purchase long-term care insurance.

The American Association for Long-Term Care Insurance has just published a state-by-state listing of available tax deductions on the organization’s website at www.aaltci.org/tax.

To learn more about long-term care planning and get long-term care insurance costs from a designated expert visit the American Association for Long Term Care Insurance’s Consumer Information Center.

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“The special rules that make long-term care insurance fully tax deductible for owners of small and mid-sized businesses, are still a well kept secret,” explains Jesse Slome, executive director of the Association.  The Guide To Tax-Qualified Long-Term Care Protection explains that in 2012 individuals may each be able to deduct as much as $4,370 of the cost of long-term care insurance premiums.

“Business owners can benefit from the tax deductions with fewer rules,” Slome notes.  “However, individuals should keep in mind that the deductions can become extremely meaningful especially after one retires.”  That is because after retirement, incomes generally drop which results in more individuals qualifying for a deduction for health and medical expenses.  “Long term care insurance premiums are included as a health-related expense, and could therefore be deductible up to the yearly aged-based limit,” Slome adds.

The Association has also published the 2012 edition of the Long-Term Care Insurance Guide For Accountants And CPAs designed to give detailed explanations of how the tax rules handle premiums for individuals, self-employed, Limited Liability Companies and C-Corporations.  “Many tax professionals welcome a single, current source of information and this is an excellent way for insurance professionals to create strategic alliances and generate ongoing prospect referrals,” Slome adds.

Information regarding the guides can be obtained on the Association’s website.  To view copies go to: http:www.aaltci.org/tools or call the organization for information at 818-597-3227.

Founded in 1998, the American Association for Long-Term Care Insurance is the national trade organization established to educate both consumers and financial professionals.  The organization’s online Consumer Information Center has been nationally recognized as the nation’s most comprehensive resource for current information on the topic.

Click this link to read 2 free consumer guides from the American Association for Long Term Care Insurance

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