Only long-term-care costs of chronically ill individuals can be written off. A person is chronically ill if he or she is unable to perform at least two activities of daily living without help for at least 90 days. Activities of daily living include eating, using the toilet, bathing, dressing and the like. Anyone in need of long-term care because of dementia or another severe cognitive impairment is also chronically ill if substantial supervision is needed to protect his or her personal health and safety. The chronic illness must be certified by a licensed health care practitioner. Premiums that one pays for long-term-care insurance are also tax-deductible. But the write-off is capped for each person according to his or her age. For 2019, taxpayers who are age 71 or older can deduct up to $5,270 per person. Filers age 61 to 70…$4,220. Those who are 51 to 60 can deduct as much as $1,580. Individuals who are 41 to 50 can take $790. And people age 40 and younger…$420. For most, long-term-care premiums are medical expenses, deductible only by itemizers to the extent total medicals exceed 10% of adjusted gross income. However, self-employed persons can often deduct long-term-care insurance premiums as an adjustment to income on Schedule 1 (Form 1040) without having to itemize.


by | Jul 11, 2019 | TallyTaxMan | 0 comments