Long-term care insurance can help protect your savings from the potentially high costs of nursing care, assisted living, or other qualifying long-term care services. But paying for a policy may also provide a tax benefit, depending on your age, the type of policy you own, how you file your taxes, and whether you are self-employed.

For 2026, the IRS has increased the age-based limits on qualified long-term care insurance premiums that may be treated as medical expenses. The maximum amount ranges from $500 for individuals age 40 or younger to $6,200 for individuals age 71 or older.

So, can you deduct your long-term care insurance premiums on your 2026 tax return? The answer depends on how you claim the deduction and whether your policy meets the federal requirements.

Here is what individuals, retirees, and business owners should know about long-term care insurance tax deductions in 2026.

What Are Long-Term Care Insurance Tax Deductions?

A qualified long-term care insurance policy can be treated as a medical expense for federal tax purposes, subject to specific limits.

For taxpayers who itemize deductions, qualified long-term care insurance premiums can generally be included with other eligible medical expenses on Schedule A. However, medical expenses are generally deductible only to the extent that total qualifying medical expenses exceed 7.5% of adjusted gross income (AGI).

The important point is that you cannot automatically deduct every dollar you pay for long-term care insurance. The IRS places an annual limit on the amount of qualified premiums that can be counted as medical expenses.

The limit is based on the insured person’s age at the end of the tax year.

What Are the 2026 Long-Term Care Insurance Deduction Limits?

For tax year 2026, the IRS has established the following maximum amounts for eligible long-term care insurance premiums:

These limits apply per person, meaning each individual covered by a qualified policy has a separate age-based limit.

For example, if both spouses are over age 71 and each has a qualified long-term care insurance policy, each spouse may have up to $6,200 of eligible premiums for purposes of the federal limit.

However, the age-based limit is not necessarily the amount you can claim as a tax deduction. Your actual deduction will depend on the premiums you paid, your other medical expenses, your AGI, and whether you itemize.

What Makes a Long-Term Care Insurance Policy Tax-Qualified?

Not every insurance policy that provides long-term care benefits automatically receives the same federal tax treatment.

Generally, a qualified long-term care insurance contract must meet requirements under federal tax law. The IRS describes a long-term care contract as one that provides coverage for qualified long-term care services and meets requirements such as being guaranteed renewable and generally not providing a cash surrender value.

Qualified long-term care services can include necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance, and personal care services when provided to a chronically ill individual under an appropriate plan of care.

Before claiming a deduction, review your policy documents or annual premium statement to confirm that the policy qualifies under federal tax rules.

Are Long-Term Care Insurance Premiums Always Deductible?

No, One of the most common misconceptions is that paying for long-term care insurance automatically creates a tax deduction. It does not.

For individuals claiming the deduction as an itemized medical expense, the premiums must first qualify under the IRS rules and fall within the applicable age-based limit.

Then, your total qualifying medical expenses generally must exceed 7.5% of your AGI before the excess can be deducted on Schedule A.

This means someone may pay thousands of dollars in long-term care insurance premiums but receive little or no additional federal tax deduction if their total medical expenses do not exceed the AGI threshold.

Your other eligible medical expenses may include items such as certain health insurance premiums, prescription medications, and qualified medical services.

How Does the Deduction Work for Self-Employed Individuals?

The rules can be different for self-employed taxpayers.

If you are self-employed and have qualifying income, you may be able to claim a self-employed health insurance deduction for qualified long-term care insurance premiums paid for yourself, your spouse, and certain dependents. This deduction is generally taken as an adjustment to income rather than as an itemized deduction.

However, the special age-based limits for qualified long-term care insurance still apply.

The IRS states that when qualified long-term care insurance is used in calculating the self-employed health insurance deduction, the taxpayer must use Form 7206, Self-Employed Health Insurance Deduction, rather than the basic worksheet in the Form 1040 instructions.

There are also additional restrictions. For example, you generally cannot claim the self-employed health insurance deduction for months in which you were eligible to participate in certain employer-subsidised health or long-term care plans.

If you are a business owner, the distinction between an above-the-line self-employed health insurance deduction and an itemized medical expense deduction is important.

Can You Deduct Long-Term Care Expenses in Addition to Insurance Premiums?

Potentially yes, The tax rules do not apply only to insurance premiums. Unreimbursed expenses for qualified long-term care services may also qualify as medical expenses, provided the applicable requirements are met.

This can include certain costs associated with care provided to a chronically ill individual under a plan of care.

However, you should not assume that every cost related to assisted living, nursing care, or home care is automatically deductible. The nature of the service, the individual’s medical condition, the care plan, insurance reimbursements, and other factors can affect the tax treatment.

Keeping detailed records is especially important when long-term care costs become significant.

What Records Should You Keep?

Good documentation can make tax preparation much easier and help support your deduction if questions arise later.

Keep records of:

• Your long-term care insurance policy
• Annual premium statements
• Proof of premium payments
• The age of each person covered by the policy
• Documentation showing that the policy is qualified
• Medical and long-term care expenses paid during the year
• Amounts reimbursed by insurance or another source
• Your AGI and tax return calculations
• Documentation supporting any self-employed health insurance deduction

If you are self-employed, also keep the records used to determine your business income and eligibility for the self-employed health insurance deduction.

Do not rely solely on your bank or credit card statements. Keep the insurance company’s statements and supporting policy documents with your tax records.

What If You Receive Benefits From a Long-Term Care Policy?

Buying long-term care insurance and receiving benefits from the policy are two different tax questions.

In many cases, payments received under a qualified long-term care insurance contract are treated as payments for personal injury or sickness and may be excluded from income. However, special rules can apply to benefits paid on a per diem or periodic basis. The IRS notes that Form 8853 may be required for certain payments.

The amount of benefits that may be excluded can also depend on the applicable limitations and the actual cost of qualified long-term care services.

If you begin receiving benefits from a long-term care policy, it is worth reviewing the tax reporting requirements rather than assuming that all payments are automatically tax-free.

Key Takeaways

Long-term care insurance can provide financial protection, but understanding the tax rules can help you plan for the cost more effectively.

For 2026, the IRS increased the age-based limits for qualified long-term care insurance premiums. The maximum eligible amount is $500 for individuals age 40 or younger, $930 for ages 41–50, $1,860 for ages 51–60, $4,960 for ages 61–70, and $6,200 for those over 70.

The amount you can actually deduct depends on your tax situation. Itemized medical deductions are subject to the 7.5% AGI threshold, while self-employed taxpayers may have a separate deduction available if they meet the requirements.

Most importantly, make sure your policy qualifies, keep detailed records, and review your deduction strategy before filing your return.

Redbud Tax & Advisors Tip

Long-term care insurance is a long-term financial decision, and its tax treatment can be easy to overlook.

If you are approaching retirement, already paying for long-term care coverage, or are self-employed, review your premiums alongside your broader tax and financial plan. A deduction may be available, but the rules surrounding qualified policies, age-based limits, medical expenses, and self-employed health insurance can make the calculation more complicated than it first appears.

At Redbud Tax & Advisors, we help individuals and business owners understand how tax rules fit into their broader financial picture. Planning before tax season can help you identify potential deductions, maintain the right documentation, and avoid surprises when it is time to file.

Need help reviewing your 2026 tax situation? Connect with Redbud Tax & Advisors to discuss your tax planning needs.