Hi David,
Thanks for your reply. However, I would like to request more info.
Your first sentence seems to contradict what you say in your 2nd and 3rd sentences. In the vein of not double dipping, I believe you are expressing that you can only deduct those health expenses (medical and long-term care and even long term care premiums) that exceed long term care benefits.
Again, this was my understanding/assumption up until recently where I started to question, but I am looking for something concrete that would indicate this. Can you refer me to a portion of tax code that would substantiate? Just for total clarity, here is an example of Turbo-Tax input:
1) Enter 50k long term care benefits.
2) Enter that it is qualified plan.
3) Enter number of days
4) Enter long term care expenses as $0.
As long as the per diem limit is not exceeded ($50k / # of days) then long-term care benefits are deemed non-taxable by Turbo-Tax. Noting that I question why Turbo-Tax asks you to enter long term care costs.
One can view this as long-term care expenses (care costs only) as NOT being allocated. So, therefore, one would assume they are free to allocate medical expenses (specifically long-term care services where one example is personal care) as a medical expense deduction. There is no warning about "coordination" of medical expense deductions with long term care payments in TurboTax. Therefore:
5) Enter $30k long-term care expenses in deductions and credits.
Turbo-tax accepts this as a deduction with no flags.
Again, I'm looking for something concrete that would indicate differently from this scenario ... rather than just taking your word for it.
After all, another way of looking at this ... from 1000ft level ... (to me) is that long-term contracts are just a form of insurance. You pay them money for many years, and then they pay you back on a per-diem basis if you happen to meet contractual requirements, i.e. being unable to perform certain activities of daily living. Where is there a requirement to "coordinate" long term care benefits with medical expenses in the tax code?
In conclusion, I need more detail.
If there are any others who could provide some further insight, feel free to chime in.
Thanks much.
