Are long-term care insurance premiums tax-deductible for Tampa-Saint Petersburg-Clearwater metro area residents?

As a Long-Term Care Insurance Agent and Broker with many years of experience helping Tampa-Saint Petersburg-Clearwater metro area residents address their most significant healthcare challenges, I have witnessed firsthand how the rising costs of care can impact a family’s financial legacy. Whether you are enjoying your retirement in Westchase or planning for the future in another Tampa-Saint Petersburg-Clearwater metro area, one of the most frequent questions I receive is: “Are long-term care insurance premiums tax-deductible for Tampa-Saint Petersburg-Clearwater metro area residents?”

The answer is a nuanced “yes,” but it depends heavily on your age, how your business is structured, and the type of policy you choose. In this guide, we will delve into the tax landscape for 2025, specifically for individuals residing in the Tampa-Saint Petersburg-Clearwater metro area.

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Are long-term care insurance premiums tax-deductible for Tampa-Saint Petersburg-Clearwater metro area residents?

The 2025 Tax Landscape for Tampa-Saint Petersburg-Clearwater Metro Area Residents

Navigating the intersection of healthcare and tax law can feel overwhelming. However, for many residents in the Tampa-Saint Petersburg-Clearwater metro area, the tax code actually offers several incentives to help offset the cost of long-term care insurance premiums.

Federal Tax Deductibility: The Age-Based Limits

Because Florida does not have a state income tax, we don’t have a state-level deduction to discuss. However, the federal government allows you to treat “Tax-Qualified” long-term care insurance premiums as a medical expense. For individuals, these are deductible on Schedule A (Form 1040), provided your total unreimbursed medical expenses exceed 7.5% of your adjusted gross income (AGI).

The IRS sets specific caps on how much of your premium counts as a “medical expense” based on your age at the end of the tax year. For 2025, the limits are as follows:

Attained Age Before Close of Tax Year	2025 Maximum Deductible Limit
40 or less	$480
More than 40 but not more than 50	$900
More than 50 but not more than 60	$1,800
More than 60 but not more than 70	$4,810
More than 70	$6,020

Pro-Tip for Tampa-Saint Petersburg-Clearwater metro area Residents: If you and your spouse are both over age 60 and have qualified policies, your combined deductible limit for 2025 could be as high as $9,620. This can be a significant “above-the-line” benefit if you meet the AGI threshold.

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Business Owners in Tampa: A Hidden Tax Advantage

If you own a business in the Tampa Bay area—whether it’s a small consultancy in Downtown Tampa or a larger enterprise in the Westshore District—the tax benefits for long-term care insurance in the Tampa-Saint Petersburg-Clearwater metro area are even more robust.

1. C-Corporations

If your business is a C-Corp, the company can generally deduct 100% of the premiums paid for its employees, their spouses, and dependents as a business expense. These premiums are not considered taxable income to the employee. This is one of the few remaining “perks” that can be offered on a discriminatory basis (meaning you can offer it just to key executives or yourself).

2. Self-Employed, Partnerships, and S-Corp Owners

For those who are self-employed or own more than 2% of an S-Corp, you can typically deduct the premium up to the age-based limits shown in the table above. The best part? This is an “above-the-line” deduction, meaning you do not need to itemize or meet the 7.5% AGI threshold to take advantage of it.

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Using Your HSA to Pay Premiums in the Tampa-Saint Petersburg-Clearwater metro area

Many of my clients in Tampa use Health Savings Accounts (HSAs) to manage their healthcare costs. You may be surprised to learn that you can use tax-free HSA distributions to pay for your long-term care insurance premiums.

• Tax-Free In, Tax-Free Out: You contribute to your HSA with pre-tax dollars, and you can withdraw those funds tax-free to pay for your LTCI premiums, up to the age-based limits mentioned above.
• No Double-Dipping: You cannot take a tax deduction for premiums paid with HSA funds, but using an HSA is often the most efficient way to pay for coverage for Tampa-Saint Petersburg-Clearwater metro area residents because it uses “untaxed” dollars.

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Comparing Long-Term Care Insurance Plans in Tampa

When looking at the long-term care insurance market in the Tampa-Saint Petersburg-Clearwater metro area, it is vital to weigh the pros and cons of the different types of plans available. As a broker, I help residents compare two primary paths: Traditional LTCI and Hybrid (Linked-Benefit) Policies.

Traditional Long-Term Care Insurance

• Pros: Generally has the lowest initial out-of-pocket cost. It is also the most likely to be “Tax-Qualified,” meaning the premiums are eligible for the deductions discussed above.
• Cons: Premiums are not guaranteed and can (and often do) increase over time. There is also a “use it or lose it” risk; if you never need care, the insurance company keeps the premiums.

Hybrid Life + LTC Policies

• Pros: These are very popular with residents in the Tampa-Saint Petersburg-Clearwater metro area, because they offer “asset repositioning.” If you need care, you have a pool of money. If you don’t, your heirs receive a death benefit. The premiums are also typically guaranteed never to increase.
• Cons: Higher initial cost. Additionally, only the portion of the premium specifically designated for long-term care is tax-deductible (if any), making the tax advantage smaller than traditional plans.

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Why Tampa Residents Need a Local Strategy

The cost of care in Florida is rising. In the Tampa-St. Petersburg-Clearwater metro area, a private room in a nursing home can easily exceed $120,000 per year in 2025. Without a plan, these costs can evaporate a lifetime of savings in just a few years.

By choosing a qualified long-term care insurance contract in Florida, you are not just buying a policy; you are protecting your autonomy and your family’s future. Furthermore, Florida is a Partnership State. If you purchase a Partnership-qualified policy, you may be eligible for “Asset Disregard,” which allows you to protect a dollar of your assets for every dollar your insurance policy pays out, should you ever need to apply for Medicaid.

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Summary of Tax Benefits for Tampa-Saint Petersburg-Clearwater Metro Area Residents

To ensure you are getting the most out of your planning, keep these three points in mind:

1. Check for “Tax-Qualified” Status: Only policies that meet the standards of IRC Section 7702B qualify for federal tax deductions.
2. Monitor Your Age: As you get older, your deduction limit increases significantly.
3. Consult a Professional: Tax laws are complex. Always verify your specific situation with a CPA who understands Florida’s unique tax environment.

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Finding Your Trusted Advisor in the Florida Health Insurance Market

We have taken a very detailed look at the Tampa-Saint Petersburg-Clearwater metro area, the Health Insurance Market for 2026. We’ve seen how its clever design offers a modern solution for today’s retirees. We’ve also seen that while the plan’s benefits are stable and reliable, its monthly cost can vary significantly from one insurance company to another. Choosing the right company at the right price is the key to maximizing the value of Health Insurance in 2026.

This is where the guidance of an independent, licensed insurance agent becomes invaluable. A Health Insurance specialist acts as your personal shopper and advocate. They can instantly compare the rates for the same Health Insurance plan options from all the different carriers in your state. They can also provide insight into a company’s history of rate increases, which is a crucial factor in your long-term satisfaction.

It is essential to understand that this expert guidance is provided to you at absolutely no extra cost. The insurance industry is regulated so that the price of a plan is the same whether you buy it through an agent or directly from the company. When you enroll with an agent’s help, the insurance company pays them a commission. This system allows you to get free, unbiased, and professional advice to help you make the best possible choice.

To ensure you get the best value, it is usually best to use a licensed insurance agent, such as Steve Turner at SteveTurnerInsuranceSpecialist.com. Steve Turner is a licensed Agent/Broker contracted with most Insurance Carriers. An expert like Steve can help you navigate the 2026 Health Insurance market, find the most competitively priced Health Insurance plans for you, and ensure you have a Health Insurance plan that provides both financial security and true peace of mind.

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