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MissouriFamilies.org - Money Matters - Consumer Action

 

Finance Quick Answers

 

 

What is the tax status for long term care premiums?


Policies issued after January 1, 1997, which provide tax incentives, are classified tax-qualified plans. Policies issued before 1997 were 'grandfathered' into the law and are considered tax-qualified. Premiums for tax-qualified plans are deductible to the extent you itemize and have medical expenses in excess of 7.5% of adjusted gross income. Benefits received are non-taxable.
 

Policies issued after January 1, 1997, which do not provide tax incentives, are classified as non tax-qualified plans. Premiums for these policies are not tax-deductible and it is not clear whether benefits received are taxable or not.

 

 

Dr. Joyce Cavanagh, Former Assistant Professor and State Specialist, Consumer and Family Economics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Last update: Friday, July 25, 2008

 

 

 


 
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