Life Events

Every stage of life has its own financial needs and concerns. The life events on this page can help you target the key financial strategies and issues that are likely to be most important to you in this stage of your life.

Starting Out    Getting Married    Starting a Family    Saving for College    Planning/Saving for Retirement    Managing College Expenses    Long-Term Care Planning    Planning an Estate    Nearing Retirement/Retirement    Caring for an Aging Parent    Financial Windfall   
Can I deduct premiums paid for long-term care insurance (LTCI)?

It depends on several factors. Your LTCI contract must be a qualified one, you must itemize deductions on Schedule A of IRS Form 1040, and the total of your medical expenses (including your LTCI deduction) must exceed 10 percent of your adjusted gross income (AGI). Qualified LTCI premiums are deductible as medical expenses (subject to the 10 percent of AGI floor) within certain limits, based on your age.

Note: Prior to 2013, the threshold to deduct medical expenses was 7.5 percent of adjusted gross income. The threshold remains 7.5 percent until 2017 for those age 65 or older.

If you bought your policy before January 1, 1997, and it met the requirements of the state in which it was issued, it is automatically considered a qualified policy. LTCI contracts issued subsequently are only considered qualified for a tax deduction if they meet certain federal standards. In 2014, qualified LTCI premiums are deductible as medical expenses (subject to the 10 percent of AGI floor) within the following limits, based on your age at the end of the tax year:


Limit on Deduction:

40 or less

$370 (up from $360 in 2013)


$700 (up from $680 in 2013)


$1,400 (up from $1,360 in 2013)


$3,720 (up from $3,640 in 2013)

71 and older

$4,660 (up from $4,550 in 2013)

For more information, consult a tax professional.

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*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS), registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Fairwinds Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.