In recent years we've been able to deduct long-term care insurance premiums. While we do itemize, we don't have enough medical expenses to itemize more than $11K in medical expenses. Yet when I go to medical expenses, it boots me out when I tell them that I don't have at least $11K in medical expenses. Are long-term care insurance premiums no longer deductible?
Long term care premiums are tax deductible as a medical expense if you itemize your deductions. However to receive a tax benefit from the deduction, your total medical deductions would need to exceed 7.5% of your adjusted gross income (AGI).
Ex: AGI is $100k. 7.5% = $7,500. My medical deductions came to $10k. The total amount that I can deduct is $2,500.
In addition, the total of all your itemized deductions has to exceed your standard deduction amount for your filing status. So if your total itemized deduction are below the standard, then you would receive no tax benefit for itemizing. See the threshold amounts below.
What is my standard deduction for 2017?
Long term care premiums are tax deductible as a medical expense if you itemize your deductions. However to receive a tax benefit from the deduction, your total medical deductions would need to exceed 7.5% of your adjusted gross income (AGI).
Ex: AGI is $100k. 7.5% = $7,500. My medical deductions came to $10k. The total amount that I can deduct is $2,500.
In addition, the total of all your itemized deductions has to exceed your standard deduction amount for your filing status. So if your total itemized deduction are below the standard, then you would receive no tax benefit for itemizing. See the threshold amounts below.
What is my standard deduction for 2017?