This bill creates a tax deduction for long-term care insurance premiums that individuals can claim regardless of whether they itemize deductions on their tax returns. Currently, such premiums can only be deducted as part of medical expenses if they exceed 7.5 percent of a person's adjusted gross income, but this legislation would allow them to be deducted separately without that threshold requirement. The bill affects any taxpayer who purchases qualifying long-term care insurance and would make it easier and more affordable for Americans to obtain coverage for nursing home care, assisted living, and related services. To offset the cost of this tax benefit, the bill reduces various existing tax credits related to clean energy, climate, and business investments by a percentage determined annually by the Treasury Department to match the revenue lost from the new deduction. The changes would take effect for tax years beginning after the bill's enactment.
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