(This article also updates figures in a previous article on LTC Tax Deductions - which is suggested reading.)

The tax deductibility of long-term care insurance is always a topic of interest.  The limits for 2009 deductible expenses for long-term care insurance, as published at H&R Block, have been released.  As with any tax issue, we recommend getting professional advice from a CPA.  We are not tax professionals, and cannot give tax advice.  The rules and regulations are commented on only subject to our interpretation.  This is not tax advice. 

First off, for small business owners, there are special Long-Term Care Insurance deductions.  So this article continues assuming you are not a small business, and may qualify for deductions when long-term care premiums are considered a medical expense.  Here's how it works:

Taxation of Qualified Premiums and Out-of-Pocket Expenses Premiums paid for qualified LTCI policies and out-of-pocket expenses for long-term care are tax deductible as medical expenses to the extent that the taxpayer’s total qualified medical expenses exceed 7.5 percent of his or her annual adjusted gross income (AGI).

Basically if your AGI is, say, $60,000, then taking 7.5% of that gets you to $4,500.  So essentially if your medical costs (including LTC premiums) are over $4,500 in a year, you can deduct part of those expenses from your income. 

Taking this rule, there is a limit on how much LTC premium can be deducted, based on age.  Here's the updated chart.  For example a couple in the 61-70 age range can now deduct up to $3,180 in premiums on 2009 taxes - an increase of $100 over last year.

Here are a few other IRS sources: Topic 502 - Medical and Dental Expenses | Tax Guide for Seniors