Committee on Ways and Means
Summary of Chairman’s Amendment to H.R. 4946

Improving Access to Long-Term Care Act of 2002

H.R. 4946 provides immediate tax relief to assist individuals in acquiring and maintaining long-term health care for themselves, their spouse and their dependents.

• Under current law, individuals may claim an itemized deduction for the cost of eligible qualified long-term care insurance premiums, but only to the extent that such eligible long-term care premiums, combined with the taxpayer’s additional medical expenses, exceeds 7.5 percent of adjusted gross income.

• This bill provides an above-the-line deduction for a percentage of eligible long-term care premiums for which the taxpayer pays at least 50 percent of the cost of coverage.  The deduction is available for eligible long-term care insurance that covers the taxpayer, the taxpayer’s spouse or the taxpayer’s dependents.
• The deduction is available to individuals with adjusted gross income between $20,000 and $40,000 (twice the amount for married filing jointly).  This amount will be adjusted annually for inflation.  This bill provides substantial targeted relief for those taxpayers who really need it.

• The Chairman’s amendment provides that when the income limitation is adjusted for inflation, the adjusted amount will be rounded to the nearest $1,000.