What long-term care insurance premiums qualify for a subtraction?

You may deduct the amount you paid in premiums for qualified long-term care insurance that are not otherwise deducted or accounted for. If you claimed a deduction for long-term care insurance as an Itemized Deduction on your federal return, calculate the long-term care insurance allowed as a deduction by using the worksheets below.

Qualified long-term care insurance includes any insurance policy that provides coverage for at least twelve consecutive months for yourself, your spouse, or your dependents for one or more necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance or personal care services, provided in a setting other than an acute care unit of a hospital. Group and individual annuities and life insurance policies that provide directly or that supplement long-term care insurance qualify. This includes a policy that provides for payment of benefits based upon cognitive impairment or loss of functional capacity.

Qualified long-term care insurance doesn't include any insurance policy that is offered primarily to provide coverage for the following:
  • Basic Medicare supplement
  • Basic hospital expense
  • Basic medical surgical expense
  • Hospital confinement indemnity
  • Major medical expense
  • Disability income or related asset protection
  • Accident only
  • Specified disease or specified accident
  • Limited benefit health
Life insurance policies that accelerate death benefits generally don't qualify.

Health Insurance and Long-Term Care Insurance Deduction Limitations
1. Amount claimed for health insurance costs on federal Form 1040, Schedule A
2. Amount claimed for long-term care insurance on federal Form 1040, Schedule A
3. Additional medical expenses claimed on federal Form 1040, Schedule A
4. Total medical expenses. Add lines 1, 2 and 3.
5. Enter 7.5% of federal adjusted gross income.
6. Medical expense deduction allowed on the federal Form 1040, Schedule A. (Line 4 less line 5. If less than zero, enter zero.)

Health Insurance
7. Enter the total paid for health insurance.
8. Portion of health insurance deduction allowed on federal Form 1040, Schedule A. Enter the lesser of line 1 or line 6.
9. Enter the total health insurance costs deducted elsewhere on the federal return.
10. Idaho health insurance deduction allowed. Line 7 less lines 8 and 9. Enter this amount on Form 39R, Line 18.

Long-Term Care Insurance
11. Enter the total paid for long-term care insurance.
12. Medical expense deduction not allocated to health insurance costs. Line 6 less line 1. If less than zero, enter zero.
13. Portion of long-term care insurance deduction allowed on federal Form 1040, Schedule A. Enter the lesser of line 2 or line 12.
14. Enter the total long-term care insurance costs deducted elsewhere on the federal return.
15. Long term care insurance deduction allowed. Line 11 less lines 13 and 14. Enter this amount on Form 39R, Line 19.

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