Long Term Care Certification Practice Test

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Prepare for the Long Term Care Certification Exam. Use flashcards and multiple choice questions, with each question offering hints and explanations. Ace your exam with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

For personal long-term care insurance, which portion of premiums is deductible?

5% of adjusted gross income
10% of adjusted gross income
15% of adjusted gross income
20% of adjusted gross income

The correct answer is: 10% of adjusted gross income

The correct answer reflects that individuals can deduct long-term care insurance premiums on their taxes based on their adjusted gross income (AGI). Specifically, taxpayers can deduct the amount of long-term care insurance premiums that exceeds a certain percentage of their AGI. This percentage is 10%, meaning that if the total premiums paid exceed 10% of an individual’s adjusted gross income, that excess can be deducted from taxable income. This deduction aims to provide some financial relief to individuals who purchase long-term care insurance, encouraging them to plan for potential future healthcare needs. Understanding this deduction is vital for individuals looking to maximize tax benefits while ensuring adequate long-term care coverage.