Cutting down on your tax burden is something that everyone is interested in. One way you can lower your tax liability is to learn about long term health care and tax deductions and long term care insurance facts. Fortunately there are several tax deductions that relate to long term care.

The first issue related to long term health care and tax deductions is long term care expenses. Long term care expenses generally qualify as a tax deductible medical expense. In order to deduct these expenses you will need to have paid for the medical expense out of your pocket and you will need a receipt. You will deduct these expenses on Schedule A.

The second issue related to long term health care and tax deductions is premiums for long term care insurance. Since 1997 some premiums for long term care insurance policies have been classified as a deductible expense. However, not every long term care insurance plan will qualify for a deduction.

In order to qualify as a deductible expense your long term care insurance will need to meet several criteria. For example, a qualified long term care insurance policy has to be guaranteed renewable, the benefits that are paid need to be based on the assumption that the disability will be long term and the benefits paid by the QLTC insurance policy can't replicate those offered by Medicare. There are several other criteria that your LTC insurance will need to meet in order to be deemed a QLTC.

If you are interested in this tax deduction then you can refer to IRS tax codes to determine if your long term care insurance will qualify. The codes that will be the most useful will include 26 IRC Section 7702B(b), 106(a), 162(a) and 106. These codes can be picked up at your local IRS office.

If you long term care insurance policy turns out to be qualified for a tax deduction, then you will account for it on your Schedule A. Also if you are an employer who pays a portion of your employee's QLTC insurance premium, then you too can deduct your contributions from your tax liability. In this case the premium will be excluded from the employee's taxable income. Before you write anything off, however, talk with your tax professional to make sure you meet all of the requirements for taking this deduction.