3 Long-Term Care Tax Deductions That Retirees Often Miss

Your retirement plan should include ways to save as much as possible while spending as little as you can. Part of that process is taking advantage of every tax deduction available to you.

Fortunately for frugal seniors, there are plenty of tax deductions that can help reduce your long-term care expenses. Here are three key long-term care deductions that many retirees miss — and a list of states that also offer tax breaks related to such care.

Medicare can help you afford a variety of health care costs, such as those related to prescription drugs or short-term hospital stays. However, there are some common age-related health care expenses Medicare doesn't cover, including those associated with long-term care.

As a result, you will need to find a way to pay for long-term care expenses if you need such care. Many people prepare by purchasing long-term care insurance that offers coverage for a long-term stay in a care facility.

In some cases, you can write off a portion of the monthly premiums when you file taxes. However, there are limitations.

For the 2025 tax year, those limits were $4,810 for individuals between ages 61 and 70 and $6,020 for individuals older than 70, according to the American Association for Long-Term Care Insurance.

In addition, you typically can only write off expenses that top 7.5% of your adjusted gross income.

You may also be able to claim certain medical expenses related to your long-term care as part of your overall health care tax deduction. Specifically, services that are intended to be rehabilitative, mitigating, therapeutic, and preventative may all qualify for tax write-offs.

You might also be able to deduct expenses related to long-term assisted living, nursing home, or in-home health care.

However, these expenses are deductible only to the extent they exceed 7.5% of your adjusted gross income.

Do you plan to attend a conference with information related to a chronic illness that is triggering your need for long-term care?

Whether you're attending the conference to learn more on behalf of a dependent, your spouse, or yourself, you can likely write off the cost of conference admission.

However, note that you can't write off other conference-related expenses, including travel and meal costs.

To claim a medical expense related to long-term care on your federal tax return, you'll need to itemize deductions and file Schedule A (Form 1040).

An accountant or tax professional is best qualified to help you distinguish between medical services that qualify for deductions and those that don't.

This type of pro can also help you itemize the expenses correctly so your tax return is processed in a timely fashion and without mistakes that could trigger pushback from the IRS.

Depending on where you live, you might also be able to claim state-level long-term care deductions or tax credits. States that offer such tax breaks include:

• Alabama (deduction)
• Arizona (credit)
• Arkansas (deduction)
• California (deduction)
• Colorado (credit)
• District of Columbia (deduction)
• Hawaii (deduction)
• Idaho (deduction)
• Indiana (deduction)
• Iowa (deduction)
• Kentucky (deduction)
• Louisiana (credit)
• Maine (deduction and credit)
• Maryland (credit)
• Minnesota (credit)
• Mississippi (credit)
• Missouri (deduction)
• Montana (deduction and credit)
• Nebraska (deduction)
• New Jersey (deduction)
• New Mexico (credit and exemption)
• New York (deduction and credit)
• North Dakota (credit)
• Ohio (deduction)
• Oklahoma (deduction)
• Oregon (credit)
• Virginia (deduction)
• West Virginia (deduction)
• Wisconsin (deduction)

Each of these states has different rules regarding who qualifies for a long-term care insurance tax deduction or tax credit, and how big the tax break will be.

For example, in Minnesota, individuals can claim up to $100 as a state-specific long-term care insurance tax credit. Couples filing jointly may claim up to $200.

Meanwhile, in North Dakota, the available tax credit for long-term care is up to $250 per individual or $500 per married couple filing jointly.

Your accountant or tax professional can give you more specific information about the deductions or tax credits available to you.

Managing health care costs can be one of the more challenging aspects of retirement, especially when you rack up expenses not covered by Medicare.

Fortunately, tax credits and deductions can help reduce your long-term care costs. Taking advantage of these tax breaks could leave you better prepared for a stress-free retirement.