The Taxation of Long-Term Care Insurance

| posted in Blog

THERE ARE significant federal tax benefits in purchasing long-term care insurance, but like everything else in life and business the devil is in the details. Fortunately, the Health Insurance Portability and Accountability Act provides some clarifications. In general, the income from a long-term care insurance policy is non-taxable, and the premiums paid to buy the insurance are tax-deductible. Similar tax advantages exist at the state level, but each state treats the subject differently. The fact that there are tax benefits to purchasing long-term care coverage testifies to the vital social importance of this underutilized insurance product. Tax Treatment of Premiums…
Read More