- quote -

I specifically asked him that and he said the reimbursement was irrelevant;
you could deduct the full expense.
This makes much more sense; thanks.

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In article <glqrr8$3s6$1[at]news.motzarella.org> , mort <Mort[at]lccn.com> wrote:
- quote -


The premiums (up to a published maximum that varies by age) are allowed
as medical deductions listed on Schedule A Line 1.


Self employed taxpayers may, under certian conditions, take their
medical premiums and Long Term Care premiums as an above-the-line
adjustmnent to income on page 1 of form 1040. They may instead
take these deductions on schedule A like anyone else.



- quote -


If used for LTC


- quote -

If a nursing home bills $350/day and the LTC policy pays 280/day,
the $70/day you actually paid out of pocket is eligible to be
listed on schedule A Line 1.




- quote -



ArtKamlet at a o l dot c o m Columbus OH K2PZH

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mort <Mort[at]lccn.com> wrote:

- quote -

(3) Is not correct, at least as worded. You must add up your
total medical expenses for the year and reduce that by the
total amount you have been reimbursed for medical expenses
before using the Schedule A deduction. "Reimbursment" includes
insurance payouts, Medicare, or simply payments from other
people. (This last part enables a sort of gift tax beyond
usual levels, but that's a tangential point.)

There's also a limit on how much you can deduct for LTCI
premiums and it's fairly low. (It depends on age.)

This is all discussed in (at least) Publication 17.

Also, (1) is potentially misleading because a low-earning
self employed person will not be able to deduct all of their
insurance premiums if their earning (after retirement plan
adjustments) are lower than the premium amount.

Steve

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I went to a seminar last night on long term care insurance.

They said that:
1) The premiums are tax deductible as health costs (subject to 7.5% of
income EXCEPT to self employed)
2) Payments received from the insurance are not taxable (up to $280/day)
3) The expenses they are used to pay are deductible.

This doesn't seem right; if #1 is true, than either #2 or #3 shouldn't be.

Whats the story here?

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