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Most Long term care insurance carriers will send you a 1099 at the end of the year, letting you know how much was paid out.  There typically are two models of long-term care.  One is when you submit a bill to the long-term care carrier and they reimburse you.  The other is you get a flat rate per day or month as set by the policy without any bill or receipt to be submitted.   The potential taxability is based on the IRS per diem limit on long-term care benefits.  For 2024, the per diem rate was $410.   If the cost of care is less than the amount received, in the per diem example, there could be an amount that is taxable.   For example, your policy pays $500/day.  If your expenses are $500 or more, no taxable income.  If actual expenses are only $300/day, then $90 ($500 less $410 IRS per diem limits) would be taxable.   Per diem payments are automatically tax-free if the insured person is terminally ill.  

The "One Big Beautiful Bill" includes a Senior Bonus Benefit, specifically a $6,000 additional standard deduction for individuals 65 and older, available to those with a modified adjusted gross income (MAGI) below $75,000 (or $150,000 for joint filers). This deduction is intended to provide tax relief for seniors and is in addition to the existing standard deduction. Expires December 31, 2028. ** Please say "Thanks" by clicking the thumbs up icon in a post *** Mark the post that answers your question by clicking on the "Mark as Best Answer"

Hello @CRWest-2019 , Great question!  In order to qualify for the $6000 deduction per taxpayer you just need to be age 65 and older, include your social security number on the return and also file joint, if you are married.   The additional deduction will automatically be applied to your return once all the qualifying information is input into Turbo Tax. @CRWest-2019 An additional fact to consider is that for married couples filing joint the full deduction is available if your MAGI is up to $150,000 and phases out if income exceeds that amount.  The deduction completely phases out once your MAGI reaches $250,000.  This phase out only applies to the additional deduction and does not impact the base standard deduction.     @CRWest-2019  Thanks for joining Ask an Expert today!! If you have any additional questions, please post them!!      

Updating the turbo tax calculator for estimated tax 2025 in November 2025 does not address my need to file 3rd quarter 9/15/25 estimated taxes. I would like to be able to submit the quarter taxes with the full $46,700 senior deduction. Currently the 2024 Turbo tax desktop on the Estimated Tax worksheet for 2025 populates the Standard Senior deduction as $33,200. Can I manually in put the $13,500 (13,500+233,200=46500) in the "Other Deductions" as a workaround to force Turbo tax desktop to calculate my 3rd and future 4h quarter estimated taxes? I have tried this as a workaround and I believe Turbo is projecting the calculations correctly. Please confirm if my workaround strategy is correct.      

Yes, miles driven for charitable purposes ($.14/mile) is still deductible in 2025 (the OBBBA did not change this).  However, the deduction is available only as an itemized deduction (as opposed to the standard deduction).  In addition to the mileage in support of the charitable organization, you can also deduct other out-of-pocket costs directly related to the charitable organization, such as parking fees and tolls.   You can also still donate a car to a charitable organization, but the value of the donated car would also be an itemized deduction in 2025.   Beginning in Tax Year 2026, however, you can claim up to $1,000 ($2,000 for married filing jointly) in cash donations to charitable organizations without itemizing your deductions (and still take the standard deduction).   I hope this helps.

Charity use mileage is still deductible for tax year 2025. Go to this IRS website for the 2025 mileage rates - https://www.irs.gov/tax-professionals/standard-mileage-rates   Vehicle donations to a qualified charity are still entered as an itemized deduction on Schedule A for tax year 2025. .

Currently the federal taxation of Social Security benefits is calculated based on your provisional income, depending on your income level, and up to 50% or 85% of your Social Security benefits could be subject to federal taxes. This calculation has been key in calculating  your overall federal tax obligation.   The One Big Beautiful Bill does provide a special deduction for seniors. It's important to note that this is a deduction, not a tax credit, meaning it reduces taxable income rather than directly reducing the taxes owed.   Here’s a summary of the new senior deduction:   Eligibility and Amounts: A new $6,000 deduction is available for individuals aged 65 and older.  For married couples where both spouses are age 65 or older, the deduction increases to $12,000. Purpose: This deduction is an addition to the standard deduction already available to taxpayers, further reducing the total taxable income. It applies to all taxable income, not just Social Security benefits. Income Phase-Outs: The deduction starts to phase out for single filers with a modified adjusted gross income (MAGI) above $75,000. For married couples filing jointly, the deduction begins to phase out when their MAGI exceeds $150,000. The deduction is completely phased out for individuals with MAGI above $175,000 or married couples filing jointly with MAGI over $250,000. Impact on Social Security Taxes: For many seniors, this deduction will lower their taxable income enough that their Social Security benefits may no longer be subject to federal income tax. The deduction can substantially cover the portion of benefits that would have been taxable under prior tax rules. Limitations:   This deduction does not entirely eliminate Social Security taxation for all seniors. Higher-income seniors who remain above the phase-out thresholds may still owe federal taxes on a portion of their Social Security benefits.   For more information see: OBBA of 2025 provisions OBBA Tax Deductions for Seniors Tax Law Changes from the Big Beautiful Bill   Please feel free to reach backout with any additional questions or concerns you might have!   Thank you for joining us today and have an amazing rest of your day!   **Say "Thanks" by clicking the thumb icon in a post **Mark the post that answers your question by clicking on "Mark as Best Answer.”