It depends.
Medical expenses include the premiums you pay for insurance that covers the expenses of medical care and the amounts you pay for transportation to get medical care. Medical expense...
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It depends.
Medical expenses include the premiums you pay for insurance that covers the expenses of medical care and the amounts you pay for transportation to get medical care. Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract. See IRS Publication 502 for more information.
A qualified long-term care insurance contract is an insurance contract that provides only coverage of qualified long-term care services. The contract must:
Be guaranteed renewable;
Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed;
Provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract must be used only to reduce future premiums or increase future benefits; and
Generally not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer, or the contract makes per diem or other periodic payments without regard to expenses.
You can’t deduct payments for a qualified long-term care insurance contract for any month in which you were eligible to participate in a long-term care insurance plan subsidized by your employer or your spouse’s employer.
You can't deduct long-term care insurance if you elected to pay these premiums with tax-free distributions from a retirement plan and these distributions would otherwise have been included in income.
If the cost of the LTC rider is deducted from the cash value of the life insurance policy you cannot deduct the premiums as a medical expense.
If you have a whole life insurance policy, you can take the position that the cost of the LTC rider is eligible for a deduction as a medical expense, if the LTC rider charges on whole life policies are taken before premium dollars are placed in the cash value account.
Life insurance premiums are not deductible, so the deduction should be for only the costs of the LTC rider and only if paid directly and not taken from the cash value of the life insurance.