There are substantial tax deductions for long-term care insurance premiums paid in 2011.  When preparing your 2011 tax returns remember that:

             Premiums for "qualified" long-term care policies will be treated as a medical expense and will be deductible to the extent that they, along with other unreimbursed medical expenses (including "Medigap" insurance premiums), exceed 7.5 percent of the insured's adjusted gross income. If you are self-employed, the rules are a little different. You can take the amount of the premium as a deduction as long as it does not exceed your net income derived from the self employment minus the deduction for 50% of the self employment tax and any deductions for contributions to qualified retirement plans or SEPS. Your medical expenses do not have to exceed 7.5 percent of your income if you are employed.

     The deductibility of premiums is limited by the age of the taxpayer at the end of the year, as follows (the limits will be adjusted annually with inflation):

Bach & Jacobs, P.A.
Babette B. Bach, Esquire, Board Certified Elder Law
Fredric C. Jacobs, Esquire, Board Certified Tax Law
240 S. Pineapple Avenue, Suite 700
Sarasota, FL 34236
(941) 906-1231
www.bachjacobs.com