Why did my Federal Refund drop by over 500.00 when we entered our Long Term care premiums for both Husband and Wife?

taxtime18-- — Tue, 04 Jun 2019 20:00:15 GMT

It's difficult to say without knowing exact numbers, but...

BMcCalpin — Tue, 04 Jun 2019 20:00:19 GMT

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.

topic Why did my Federal Refund drop by over 500.00 when we entered our Long Term care premiums for both Husband and Wife? in Retirement tax questions

Why did my Federal Refund drop by over 500.00 when we entered our Long Term care premiums for both Husband and Wife?

It's difficult to say without knowing exact numbers, but...