Long-term care insurance (LTCI) can help older adults afford the long-term care services they may one day need. Policyholders may also be eligible for a LTCI premium deduction on their taxes, as the Internal Revenue Service (IRS) treats them as a medical expense.
According to U.S. Census Bureau estimates, the number of Americans age 65 and older will increase to 82 million seniors by 2050. As the population of older adults in the United States rises, so will the need for long-term care.
Many people assume they will never need long-term care. However, nearly 70 percent of adults age 65 and over will require such services at some point in their later years.
What Are Long-Term Care Services?
As adults age, they may have trouble carrying out activities of daily living, such as bathing, using the bathroom, or getting dressed, on their own. Long-term care services and supports can help such seniors in performing these daily tasks, whether at home or in another setting, such as a nursing home or assisted living facility.
Different types of LTC services may include personal care, adult day services, or care in a skilled nursing facility.
What Is Long-Term Care Insurance?
Long-term care insurance (LTCI) plans help cover the costs of these types of services, while Medicare and standard health insurance plans generally do not. LTCI policies often cover a range of care services, including those listed above.
The costs and benefits of LTCI policies vary. For example, policies may offer different:
- elimination periods (how long before policy benefits begin)
- benefit periods (the length of time the policy will pay for benefits)
- daily benefit limits (the amount the policy will cover for the person’s care per day)
How to Qualify for the Premium Deduction
To claim a deduction for qualified LTCI premiums, taxpayers must meet several criteria beyond simply purchasing a policy.
- The policy must be “qualified.” The policy must meet specific federal standards, including consumer protection provisions outlined in the Internal Revenue Code. Policies purchased after 1996 generally meet this requirement. Premiums for nonqualified policies are not deductible.
- Medical expenses must meet a specific threshold. The total of all deductible medical expenses – which includes the qualified portion of the LTCI premium – must exceed 7.5 percent of the taxpayer’s Adjusted Gross Income (AGI). Only the amount above this threshold is deductible. (Keep in mind that the amount of the premium that counts toward the deductible medical expenses is limited by the age-based maximums listed below.)
- The deduction is limited to the premium paid by the taxpayer themselves, their spouse, or a dependent. Premiums paid by an employer on a pretax basis are generally not deductible by the employee.
For married couples filing jointly, the deductible limit is based on the age of the insured individual, and each spouse’s policy premium is treated separately. For instance, if a 65-year-old spouse and a 55-year-old spouse each have a policy, they would use the $4,960 and $1,860 limits, respectively.
Tax Deductibility of LTCI Premiums for 2026
Again, to be able to deduct a portion of your long-term care insurance premiums from your taxes, your deductible medical expenses for the year must exceed 7.5 percent of your AGI. For 2026, the deductible limits per individual are as follows:
Maximum long-term care insurance premium deductions for 2026.
| The Age of the Taxpayer as of December 31, 2026 | Maximum Deduction for 2026 |
|---|---|
| Age 40 or younger | $500 (up from $480) |
| Age 40 to 50 | $930 (up from $900) |
| Age 50 to 60 | $1,860 (up from $1,800) |
| Age 60 to 70 | $4,960 (up from $4,810) |
| Over age 70 | $6,200 (up from $6,020) |
Alternatives to LTCI
For those that do not have LTCI, Medicaid, a government insurance program, can provide financial assistance for multiple types of long-term care. However, there are eligibility rules and often planning is required. With the help of a New York elder lawyer, seniors and their families can navigate the Medicaid application process and more easily realize the benefits that will help them live more comfortable lives. Navigating Medicaid’s complex requirements can be overwhelming for seniors and their families. Elder lawyers focus on helping older adults manage legal, financial, and health care issues, including qualifying for Medicaid. This may involve legally structuring an elder’s finances to ensure they meet Medicaid’s strict asset limits, such as creating trusts.
For those with LTCI, the availability of the premium deduction can help soften the cost of those policies. The experienced elder law attorneys at Kurre Schneps can help you plan ahead, find the best way to pay for your long-term care needs, and determine whether you meet the eligibility requirements for any public assistance programs.
