Paying LTC ins in advance for tax deduction
I called John Hancock LTC ins. Co to try and pay my LTC premium due in Feb within 2023 to add to other
deductions on my taxes. They did not want to help me. They promised to send an invoice but did not.
I finally got them to agree to accept the payment of I wrote a letter explains what I am doing and include the policy number which I sent next day delivery before the end of Dec. They refuse to change my due date to Jan so I would receive the invoice in Dec and then payment would be my choice. Strangely enough they did cooperate 2 years ago.
So I guess the question is can I insist they cooperate in the future?
Terry Says
I assume you are trying to “bunch” medical deductions so that amounts over 7.5% of your adjusted gross income are deductible.
I’m not a tax specialist, but if you paid the amount and they cashed the check in 2023, it would seem that you could add it to your medical expenses, regardless of the bill due date.
When property taxes were deductible (instead of the higher standard deduction) manypeople paid their Jan bills in December.
But do ask your accountant to verify this. And make sure that your December bank statement shows the account as debited for the amount you paid.
