Taxes & Insurance

The Federal Long Term Care Insurance Program is designed to be a “tax-qualified plan” under the tax code. This means that:

  • benefits are not taxable; and
  • you can deduct long-term care insurance premiums as medical expenses to the extent that your total qualified medical expenses exceed 7.5 percent of your annual adjusted gross income. The amount of the deduction is also subject to other IRS limits by age.


FLTCIP premiums cannot be paid from pre-tax money.

Some states provide favorable tax treatment of long-term care insurance premiums. Check with your state tax department for details