Certified Trust and Fiduciary Advisor (CTFA) Practice Exam

Long-term care insurance premiums can be potentially deducted on Schedule A if certain criteria are met. The IRS allows taxpayers to deduct qualified long-term care insurance premiums as part of their medical expense deduction, which is available to itemizers. The deduction amounts are subject to limitations based on the age of the taxpayer, and they must be within the overall threshold for unreimbursed medical expenses, which is typically set at 7.5% of adjusted gross income.

On the other hand, elective LASIK surgery, while it may be considered a medically necessary procedure for some, is generally not deductible unless prescribed specifically for medical reasons. Noncritical facial cosmetic surgery is usually not deductible unless it is performed to improve a deformity related to a congenital abnormality, an accident, or a disfiguring disease. Medical expenses for a non-dependent do not qualify for a deduction since only expenses related to dependents and the taxpayer themselves can be considered for medical expense deductions.

Thus, long-term care insurance premiums stand out as a deductible medical expense on Schedule A, reinforcing the importance of understanding the specific eligibility criteria surrounding medical deductions.