For 2016, the IRS has increased the amount of qualified long-term care insurance premiums you may include as eligible medical expenses if you itemize your deductions.
— If you are under 40 years old on December 31, you may deduct up to $390 per year in long-term care insurance premiums from your income.
— If you are 40 or older on December 31 but you did not reach age 51, you may take up to $730 in deductions for the year.
— If you have turned 51 or older during the year but did not yet reach 61, your maximum tax deduction for long-term care insurance premiums is $1,460.
— If you have turned 61 during the year but did not reach 71, you may take up to $3,900 in deductions for long-term care insurance premiums.
— If you have turned 71 or older by December 31, you may deduct up to $4,870 in long-term care insurance premiums.
These amounts are tax-deductible only if when combined with other qualified and unreimbursed medical expenses (including Medicare premiums) the total amount is greater than 10 percent of your adjusted gross income. For taxpayers age 65 and older, the threshold is currently 7.5 percent of adjusted gross income, rather than 10 percent.