are hybrid long term care policy premiums tax deductible
1 The Cost of Care interactive map, conducted by Genworth Financial, gives individuals a calculation on approximately how much long-term care could cost them. 2  Premiums paid on a long-term care insurance product may be eligible for an income tax deduction. If you have a policy that provides payments for other than medical care, you can include the premiums for the medical care part of the policy if the charge for the medical part is reasonable. The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement. If home care coverage is purchased, long-term care insurance can pay for home care, often from the first day it is needed. It will pay for a visiting or live-in caregiver, companion, housekeeper, therapist or private duty nurse up to seven days a week, 24 hours a day (up to the policy benefit maximum). Generally, you can deduct on Schedule A (Form 1040) only the amount of your medical and dental expenses that is more than 10% of your AGI. But if either you or your spouse was born before January 2, 1950, you can deduct the amount of your medical and dental expenses that is more than 7.5% of your AGI. You report your medical expense deduction on Schedule A, Form 1040. You cannot claim medical expenses on Form 1040A, U.S. Individual Income Tax Return, or Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents. If you itemize your deductions and do not claim 100% of your self-employed health insurance costs on Form 1040, include any remaining premiums with all other medical expenses on Schedule A (Form 1040), subject to the 10% limit (or 7.5% if either you or your spouse was born before January 2, 1950). Deduction A deduction is allowed to the limits provided in the federal Internal Revenue Code (see above for details). COLORADO. Credit A Credit is allowed for 25 percent of the premiums paid for long term care insurance during tax year for the individual and spouse. 1 Premiums paid on a long-term care insurance product may be eligible for an income tax deduction. 2  The amount of the deduction depends on the age of the covered person. 3  Benefits paid from a long-term care contract are generally excluded from income. 4  Business deductions of premiums are determined by the type of business. If you pay either the entire premium for your medical insurance or all the costs of a plan similar to medical insurance and your insurance payments or other reimbursements are more than your total medical expenses for the year, you have excess reimbursement. As they relate to U.S. income tax, two types of long-term care policies offered are. 1  Tax qualified (TQ) policies are the most common policies offered. 2  Non-tax qualified (NTQ) was formerly called traditional long-term care insurance.
Yes