While next year’s tax season is several months away, it tends to brings out the chance to save money in everyone. Savings, in this regard, means figuring out ways to reduce one’s taxable income so that a chance at an income tax refund can be realized. Having a refund check is especially important for the elderly, because it is likely the largest individual check to be received all year.
Elderly individuals who pay long term care (LTC) insurance premiums may deduct such costs from their income. While the actual deductible amount may follow a complicated formula, premium costs are generally deductible if they exceed a certain percentage of a taxpayer’s adjusted gross income (AGI) depending on the person’s age.