Tax Breaks

Your long term care insurance policy may be eligible for a federal tax deduction.  An Indiana Long Term Care Partnership Policy also qualifies for a state tax deduction.

Federal

Beginning with tax year 2013, the percentage of non-reimbursed medical expenses allowed as a deduction increased to 10% (was 7.5%).

A temporary exemption was given to individuals age 65 or older.  The threshold remains at 7.5% of AGI for those taxpayers until December 31, 2016.                                                           Beginning tax year 2017, the 10% will apply to all individuals.

State