Premiums paid by an individual for qualified long term care insurance are treated as a medical expense for purposes of itemizing medical expenses.

The amount that can be used in calculating the expense deduction is limited to the lesser of actual premium paid, or "eligible long term care premium." defined as follows:

Attained Age Before Close of Taxable Year	2014	2015
40 or less	$370	$380
More than 40 but not more than 50	$700	$710
More than 50 but not more than 60	$1,400	$1,430
More than 60 but not more than 70	$3,720	$3,800
More than 70	$4,660	$4,750

The amount of premium paid for the coverage of the individual, spouse and dependents may be deducted to the extent that the total medical expenses, including the eligible long term care premium, exceeds 7.5% of adjusted gross income (AGI). Benefits paid on a qualified long term care insurance policy to an individual are generally not taxable.

Note: Before making tax decisions about long-term care insurance it is essential that you consult with your attorney, accountant, or other tax professional, for advice regarding your own personal situation.

Sole proprietors can deduct the full premium paid for LTC coverage they provide their employees. With respect to their own coverage, the sole proprietor can deduct 100% of the eligible long term care premium, which is age based. Long-term care insurance qualifies as accident and health insurance. "Eligible long term care premium" is defined as follows:

The amount that can be used in calculating the expense deduction is limited to the lesser of actual premium paid, or "eligible long term care premium." defined as follows:

Attained Age Before Close of Taxable Year	2014	2015
40 or less	$370	$380
More than 40 but not more than 50	$700	$710
More than 50 but not more than 60	$1,400	$1,430
More than 60 but not more than 70	$3,720	$3,800
More than 70	$4,660	$4,750

There is no 7.5% of AGI threshold requirement.

A sole proprietor can deduct the full premium paid for LTC coverage by hiring his/her spouse as an employee and providing family coverage for the employee/spouse. The employer/spouse is then covered by the plan as a member of the employee's family. If the employee/spouse is a bona fide employee, the cost of the coverage is fully deductible by the employer/spouse and excludable from the employee/spouse's gross income.

Note: Before making tax decisions about long-term care insurance it is essential that you consult with your attorney, accountant, or other tax professional, for advice regarding your own personal situation.