Happy New Year! I hope that 2026 is off to a good start for you!

Tax Preparation Time Is Upon Us

If you have a tax-qualified long-term care insurance policy, the premium may be eligible for tax deductibility depending on how you file taxes.

For those who itemize federal taxes, you will want to be sure to include the eligible premium amount designated by the IRS as part of your medical expenses.

Check out this LTCI Tax Summary Chart. It shows the eligible premium allowed based on your age at the end of 2025.

OBBBA Changes

This year, the One Big Beautiful Bill Act (OBBBA) delivers major tax relief, including new deductions such as no tax on tips, no tax on overtime, no tax on car loan interest and a temporary deduction for seniors. The tax deduction for seniors over 65 may allow an additional deduction of up to $6,000 on top of either the base standard deduction or itemized deductions.

In some states, including Arizona, the eligible premium amount is allowed whether you itemize or take a standard deduction on state taxes.

As always, consult with your tax return preparer to ensure that you are following all applicable rules and guidelines.

If you have questions about your eligibility for a long-term care insurance tax deduction or credit, please call or email me.

My Focus Remains On Long-Term Care Planning

I am always available to address any questions you have, review cost and coverage, discuss the claims process and assist in filing claims when care is needed.