The Long Term Care Guy

Benefit Tax Treatment

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

2023 Daily Benefit
(Per Diem) Limit

$420

2024 Daily Benefit
(Per Diem) Limit

$410

2025 Daily Benefit
(Per Diem) Limit

$420

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.

Source: AALTCI.org please visit this link for more information.

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