Definition:

Tax-Qualified Policies

A Long-Term Care policy which meets certain requirements will qualify for favorable tax treatment. Buyers of Tax-Qualified (TQ) plans can deduct the premiums if they itemize deductions on their federal tax return based on their Adjusted Gross Income itemization requirement. The maximum deductible amount depends on age and is adjusted annually for inflation. Premiums are treated like other health insurance and medical expenses. Self-employed individuals and corporations (S-Corp, C-Corp, LLC) also have favorable tax-treatment with a tax-qualified Long-Term Care policy.

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