Recently, the IRS has released the 2022 numbers for deductibility limits for long-term care. As you may know, you are allowed to use long-term care insurance as a deductible on your taxes. Long-term care insurance is seen as a medical expense, so as long as the policy is "qualified" it can be deductible. In order for a policy to be "qualified" it must have been issued on or after January 1, 1997, and must adhere to certain requirements. Policies purchased before January 1, 1997, will be grandfathered as "qualified" as long as they have been approved by the insurance commissioner of the state they were sold in. If you are unsure if your policy is "qualified" be sure to give your policyholder a call to find out!
According to this article from ElderLawAnswers, there is a limit on how much you are allowed to deduct. What is the limit you ask? Well, that depends on your age. Below is a chart from ElderLawAnswers that spells it out for you. To remove any surprises, the numbers have not changed much from 2021 to 2022. the only difference is for ages 60 to 70. For that age group, the IRS reduced the limit by $10.00.
Something else to keep in mind is that this tax deduction is not available, for the most part, for hybrid policies. This includes policies that are both life insurance and annuity policies with a long-term care benefit. It is also important to note that your medical expenses do not have to exceed a certain percentage of your income in order to be tax-deductible. As long as you make a profit, you can take the amount of your long-term care insurance premium as a deductible.