Increased Tax Deductions for Long Term Care Insurance



Posted: Sunday, December 06, 2009

by Tula Tomlinson

 

IRS Announces Increased Tax Deductions For Long-Term Care Insurance

2010 Deductible Limits Increased Three Percent Over 2009

 

Tax deductible limits for the purchase of long-term care insurance have been increased.  The tax deductible limits apply to individuals.   Significant tax advantaged rules now also apply to business owners and self-employed individuals.

The Internal Revenue Service (IRS) increased deductibility levels for long-term care insurance policies purchased in 2010.  "Many individuals and small business owners are not aware of the significant tax savings available," states Bill Watchulonis, long-term care insurance professional with Is Long Term Care For Me located in Dallas, PA.

Some 8.25 million Americans currently own long-term care insurance and 350,000 new policies are purchased annually according to the American Association for Long-Term Care Insurance.  "The federal government and an increasing number of states now offer significant tax advantages to encourage individuals and especially small business owners to plan for the future risk of needing long-term care," explains Jesse Slome, executive director of the industry organization.

"There is still time to take advantage of tax deductions for policies purchased in 2009,"reports Watchulonis.  "Those who qualify can also qualify for the increased deduction in 2010 and small business owners may be able to deduct 100 percent of the cost for themselves and even their spouses who don't work for the business."

The following are the 2010 deductible limits for eligible long-term care insurance (per individual).

Attained Age Before Close of Taxable Year                 2010 Deductible Limit
40 or less                                                                                 $   330
More than 40 but not more than 50                                        $   620
More than 50 but not more than 60                                        $1,230
More than 60 but not more than 70                                        $3,290
More than 70                                                                           $4,110

For more complete rules and information on tax deductibility limits and rules, contact Bill Watchulonis at 570-674-0734 or send an E-mail to Bill@isLTCforMe.com.

 

This Article has been viewed 195 times. (Not updated in real-time.)
No comments yet.
We want your comments! If you can read this, you don't have javascript enabled, so you can't use this comment system. Please enable javascript.