The Internal Revenue Service has raised the income-tax deduction limit for Long Term Care (LTC) policy premiums that are paid in 2012. As in the past, the deduction varies by age of the insured person— for example, someone who is between 50 and 60 years old will see the deduction limit increase by $40. But that’s only the first part of the calculation. You can also add your eligible long-term care insurance premiums to your other unreimbursed medical expenses and deduct them if they exceed 7.5% of your adjusted gross income. For more information, see IRS Publication 502.
Here is the deduction table from the IRS communication:
|Attained Age Before the Close of the Taxable Year||2012 Limit||2011 Limit|
|40 or less||$350||$340|
|More than 40 but not more than 50||$660||$640|
|More than 50 but not more than 60||$1,310||$1,270|
|More than 60 but not more than 70||$3,500||$3,390|
|More than 70||$4,370||$4,240|