Submitted By: Rick
Answered: January 27, 2017 9:00 am

I bought a single premium long-term care policy in 2016. How much can I deduct?

The amount of premiums for a long-term care policy that are treated as a deductible medical expense if you itemize deductions is based on your age as of the end of the year. The fact that you paid a lump sum for the policy does not change the amount deductible for the year in which you make the payment. Note: Check on special rules that may apply for state income tax purposes, which may be different from federal income tax treatment.

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Tax Glossary

Keogh plan

Retirement plan set up by a self-employed person, providing tax-deductible contributions, tax-free income accumulations until withdrawal, and favorable averaging for qualifying lump-sum distributions.

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