You can purchase insurance policies that cover qualified long-term care services, and include those premiums when calculating your overall medical deduction. Qualified services include necessary diagnostic, preventative, therapeutic, curing treating, mitigating and rehabilitative services, including maintenance or personal care services. They must be required by a chronically ill person and provided by a licensed health care practitioner.
Big list, but this is referring to your typical nursing home and in-home care services usually reserved for the elderly who are unable to completely care for themselves. And Yes, we will all be there. This is probably the biggest overlooked retirement planning checkbox. Our physical longevity has outpaced our cognitive ability by several years. In other words, our bodies last longer than our minds. Here are the deduction limits for 2014-
To deduct long-term care premiums you must have a Section 105 HRA or Section 125 Cafeteria Plan in place.
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