Citi Benefits Handbook
Tax Implications
The LTC Plan is funded through a group policy intended to be a qualified LTC insurance contract under Section 7702B(b) of the Internal Revenue Code.
Subject to specified dollar limits that vary depending on your age, you may be able to include your premium in your itemized deductions on your federal income tax return if your total medical expenses, including the allowable portion of your premium, exceed 7.5% of adjusted gross income, if you are age 65 or older. The allowable dollar limits are reviewed each year by the U.S. Treasury and adjusted accordingly. The benefits you receive under the policy generally are not considered taxable income. Consult your tax advisor if you have any questions or need details.