By Jason Watson (Google+)
Posted September 2, 2014
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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-
| Under 40 | 370 |
| Age 41-50 | 700 |
| Age 51-60 | 1,400 |
| Age 61-70 | 3,720 |
| Over 70 | 4,660 |
To deduct long-term care premiums you must have a Section 105 HRA or Section 125 Cafeteria Plan in place.
Taxpayer’s Comprehensive Guide to LLCs and S Corps : 2019 Edition
This KB article is an excerpt from our book which is available in paperback from Amazon, as an eBook for Kindle and as a PDF from ClickBank. We used to publish with iTunes and Nook, but keeping up with two different formats was brutal. You can cruise through these KB articles, click on the fancy buttons below or visit our webpage which provides more information at-
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