When may an insured deduct unreimbursed medical expenses paid under a long-term care policy?

An insured may deduct unreimbursed medical expenses paid under a long-term care policy when those expenses exceed a certain percentage of the insured's adjusted gross income. This is because the Internal Revenue Service (IRS) allows individuals to deduct medical expenses that exceed a specified threshold percentage of their adjusted gross income (AGI).

For the 2023 tax year, this threshold is generally 7.5% of AGI. This means that only the portion of medical expenses that exceeds this percentage can be considered for tax deduction. This provision exists to provide tax relief to individuals who have incurred significant healthcare costs that could otherwise impose a heavy financial burden.

When considering the other options, the statement about expenses being equal to the insured's adjusted gross income does not align with IRS guidelines, as this does not create a deductible situation. The mention of expenses being under $1,000 is not relevant to the IRS deduction criteria, as the threshold for deductions is based on a percentage of AGI, not a fixed dollar amount. Finally, while it is important for long-term care expenses to be incurred through licensed providers for some care regulations, this does not determine the deductibility of those expenses for tax purposes.