Back in October we made a quick post regarding business tax deductions for long term care insurance. It was a short post with links to some very helpful resources. On the other hand, many individuals who pay for long term are care insurance are probably wondering if they can, somehow, write off some their own LTC insurance premiums. The answer is yes…
NOTE: before making any decisions regarding what you can, and can’t write off, contact a long term care specialist and find out what can be done.
The Internal Revenue Service (IRS) has announced increased deductibility levels for long-term care insurance policies purchased in 2009. “To encourage individuals to purchase long-term care insurance the federal government and many states offer tax deductions and tax incentives that increase yearly.” explains Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance (AALTCI).”
There is still time to take advantage of tax deductions in 2008 and also benefit from the increased deductible limits next year. The deductible limits under Section 213(d)(10) for eligible long-term care premiums that can be included in the term ‘medical care’ are as follows:
2009 Eligible Long-Term Care Insurance Premiums
Attained Age Before Close of Taxable Year & Max. Limit
- 40 or less: $ 320
- More than 40 but not more than 50 $ 600
- More than 50 but not more than 60 $1,190
- More than 60 but not more than 70 $3,180
- More than 70 $3,980
Source: IRS Revenue Procedure 2008-66 (2009 limits)
More info resources regarding long term care insurance tax write-offs:
- http://www.kiplinger.com/columns/ask/archive/2008/q0814.htm
- http://www.smartmoney.com/personal-finance/insurance/the-smartmoneycom-ltc-insurance-evaluators-12864/#calculator2
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