IRS boosts LTCI premium deductions

People who were 40 or younger before the end of the tax year can deduct up to $390 for long-term-care insurance premiums, while people who were older than 70 can deduct up to $4,870, according to newly issued IRS instructions. Premiums for qualified LTC plans are deductible by the taxpayer, spouse or dependents to the extent that premiums and other unreimbursed medical expenses exceed 10% of the insured’s adjusted gross income, or 7.5% of AGI for people 65 and older. Self-employed people who made a net profit can deduct LTCI premiums regardless of whether medical expenses exceeded a certain percentage of AGI. Elder Law Answers (10/21)