It's difficult to say without knowing exact numbers, but long
term care premiums (LTC) are not handled the same way as other medical
expenses.
First, there is a
limit to how much you can deduct based on your age bracket. Look at the section
"Qualified Long-Term Care Insurance Contracts" in IRS
Publication 502. Here you will note that a taxpayer who is 41 to 50 years
of age can deduct only the first $770 of LTC insurance premiums.
Second, no medical expenses are deductible until the total
exceeds 7.5% of your adjusted gross income (AGI).
Third, Itemized Deductions (of which medical expenses are a
part) are not used if they are less than the Standard Deduction.
But, generally, it's the fact that in step #1 that the LTC
premiums are limited that catches people by surprise.
