Deduct long-term care premiums

Find out whether premiums for long-term care policies are deductible.

A: Yes. Businesses are permitted to deduct premiums up to fixed dollar amounts, which are set based upon the age of each employee insured.

For an individual purchasing a policy, premiums are only deductible to the extent that they exceed 7.5% of adjusted gross income. It is deducted on Schedule A attached to the 1040 form.

Send your money management questions to medec@advanstar.comAnswers to our readers' questions were provided by Medical Economics adviser David J. Schiller, JD, Schiller Law Associates, Norristown, Pennsylvania.