| Different tax treatment applies to different types of entities. The information below outlines the tax treatment for an individual. For more information about Sole Proprietors, Partnerships, S Corporations and C Corporations please contact your local financial professional from the MassMutual Financial Group companies for general guidance or contact your personal tax professional.
Tax treatment for premiums paid by an individual
The benefits an individual receives from a qualified long term care insurance (LTC) policy are not includible in taxable income when they are reimbursements for actual expenses incurred for qualified long term care services. Maximum deductions for qualified long term care insurance premiums are set under Internal Revenue Code Section 213(d)(10).
Note: only medical expenses in excess of 7.5 percent of adjusted gross income are deductible.
Maximum Deductions for Qualified Long Term Care Insurance Premiums Under Code Section 213(d)(10)
| Attained Age Before Close of Year |
2006 |
| 40 or younger |
$280 |
| 41 through 50 |
$530 |
| 51 through 60 |
$1,060 |
| 61 through 70 |
$2,830 |
| 71 and older |
$3,530 |
|
Tax treatment for benefits received by an individual
When benefits are received from an LTC policy on a daily basis, up to $250 per day in benefits do not need to be included as income. If benefits exceed this limit, the excess amount would be included as income unless they were to reimburse actual long term care expenses incurred.
The information contained on this Web site is being provided with the understanding that it is not intended to be interpreted as specific legal or tax advice. Neither MassMutual nor any of its employees or agents are authorized to give legal or tax advice. The information provided here may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek from an independent professional advisor, legal or tax advice. | 
