Is Long Term Healthcare Insurance Deductible? 
Long-term care premiums may be deductible on both the state and federal level as allowed in the IRS 1040 tax return and the state income tax return . There is a formula that changes annually that reflects the amount of premium that can be counted as deductible . However , there have been changes to the amount of allowable medical expenses that can be deducted since the inception of the PPACA . Long-term care benefits are not taxable as regular income as long as the policy is clearly indicated `` tax-qualified '' . Most policies sold today are tax-qualified and benefits paid from them do not need to be reported as income on tax returns . 