The Internal Revenue Services (IRS) will increase the individual long-term care insurance (LTCI) premium deduction limit a little more for purchasers in their 40s in 2016 than for purchasers in other age groups.
The IRS has published the new deduction limits in Revenue Procedure 2015-53, a document that updates the figures for 2015, which were given in Revenue Procedure 2014-61.
Federal law makes an LTCI deduction available to consumers who have enough medical bills to itemize their medical expenses.
To itemize medical expenses, consumers must have eligible expenses not covered by health insurance that exceed 10 percent of their adjusted gross income.
The deduction might be most relevant to consumers who were healthy enough to qualify to buy LTCI at some point, and then, when the LTCI policy was already in force, developed costly health problems.