Is it true that I can deduct my long-term-care insurance premiums on my tax return this spring? Can I write off the entire premium?
If you have a tax-qualified long-term-care insurance policy, you can count a portion of the premium as a tax-deductible medical expense. Medical expenses are deductible to the extent they exceed 10% of your adjusted gross income (or more than 7.5% of AGI if you’re 65 or older). Most long-term-care policies issued in the past several years meet the requirements (ask your insurer about yours). See IRS Publication 502 for more information about eligible long-term-care policies.
The deductible amount is based on your age. If you’re 40 or younger, you can deduct up to $370 of your annual premiums for 2014. You can deduct up to $700 if you’re 41 to 50; up to $1,400 if you’re 51 to 60; up to $3,720 if you’re 61 to 70; and up to $4,660 if you’re 71 or older.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
You can also deduct other medical expenses that aren’t reimbursed by insurance -- see IRS Publication 502, Medical and Dental Expenses, for a full list of eligible expenses. Medical expenses are an itemized deduction on Schedule A.
-
Here's How To Get Organized And Work For YourselfWhether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
-
How to Manage Risk With Diversification"Don't put all your eggs in one basket" means different things to different investors. Here's how to manage your risk with portfolio diversification.
-
The Big CPA Shortage Problem in AccountingCareer This once resilient accounting industry is cracking, as the labor force seems in dire straits. It’s also affecting the IRS.
-
Roth IRA Contribution Limits for 2024 and 2025Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
You May Have to Put Catch-Up Contributions in a Roth 401(k): That's Not a Bad IdeaRoth 401(k) High earners will be required to put their catch-up contributions in a Roth 401(k).
-
Five Tax Breaks for Paying Your Student LoanTax Letter After a three-year pause, student loan payments have resumed, putting a dent in people's wallets. But there are some tax breaks that can help.
-
The 10-Year Rule for Inherited IRAsKiplinger Tax Letter The IRS’ interpretation of the 10-year clean-out rule on inherited IRAs can be complicated.
-
Pay Your Tax Debts if You Want to Keep Your Passport: Kiplinger Tax LetterTax Letter Are you applying for or renewing a passport? Be sure you’ve paid your federal taxes.
-
Tax Scam: IRS Warns Taxpayers Against Filing False W-2 InfoScams A new tax scam on social media advises lying on your W-2 to falsely claim credits and bigger refunds.
-
529 to Roth IRA: Should You Rollover Unused Funds Before Year-End?Thanks to the SECURE 2.0 Act, you can roll over funds from your 529 into a Roth IRA, as long as certain conditions are met.
