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Tax Treatment of Benefits

For Tax-Qualified Long-Term Care Insurance policies that pay benefits under an Indemnity Model, benefit payments are subject to a daily dollar cap.

If the individual taxpayer receives Tax-Qualified Long-Term Care Insurance benefits in excess of this annual daily limit, those “excess benefits” will be considered income for tax purposes. However, the taxpayer may exclude from income the “excess benefits” to the extent of the individual’s actual unreimbursed Tax-Qualified Long-Term Care expenses.

We do not provide tax or legal advice. Any decisions whether to implement these ideas should be made by the client in consultation with professional financial, tax, and legal counsel.

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Customer Reviews

We would highly recommend Paul Hallmark at Capstone Planning Solutions.

Melanie M

His service was exceptional

Kelley W

Paul was extremely professional, and all my questions and concerns were answered

Marianne W

Paul Hallmark was instrumental to me in the long-term care coverage process.

Rebecca V

Paul was very helpful through the entire process

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