Secure Long-Term Care Protection and Reduce Your Income Taxes

Many people don’t realize they can deduct the cost of Long-Term Care Insurance (LTCI) premiums—and this tax benefit could help you save significantly.

Did you know?

• Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services
• It is likely that someone over 65 who does not need will become a caregiver
• Long-term care premiums might be tax deductible
• Cost of care in your state:   https://oneamericaltcmap.hvsfinancial.com/
• Long Term Care Resource Link: https://acl.gov/ltc/basic-needs/how-much-care-will-you-need

Individual Taxpayers

If You Itemize:

Your premiums may qualify as deductible medical expenses! You can deduct the lesser of the actual premium or an age-based limit if, combined with other out-of-pocket medical costs, it exceeds 7.5% of your Adjusted Gross Income (AGI).

If You Don’t Itemize:

Talk to us about other ways you may benefit from tax savings on your premiums.

Employees & Business Owners

For Employees:

If your employer pays the premium, it’s fully deductible for them and non-taxable to you—no age limits or AGI thresholds apply!

Business Owners:

You may be able to deduct some or all your premiums as a business expense, whether you’re a C Corp owner or in another business structure.

Health Savings Accounts (HSAs)

Good News for HSA Owners:

HSA funds can cover LTCI premiums tax-free, up to an age-based cap. That means less out-of-pocket!

Want to know how to pay for long-term care premiums in a tax-efficient way? Let’s connect!