Long term care
insurance premiums may be fully tax deductible for individuals and a growing
number of states now offer deductions and even tax credits to those purchasing
this important coverage.
According to the American Association for Long Term Care Insurance, the national trade organization, tax deductibility gives individuals and business owners one very important reason to consider ways to address future long term care needs.
“Americans are living well into their 80s, 90s and even longer when the likelihood of needing extremely costly long term care services is almost a guarantee,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group charged with creating awareness for long term care related issues. “The federal and state governments recognizes this and offers the tax incentives to encourage more people to plan.”
Individuals may be able to deduct long term care insurance premiums paid from their 2011 federal income taxes. The federal levels are based on your age, Slome notes, ranging from $340 to $4,240 per-person and increase for new policies purchased in 2012. Individuals face certain limitations that are not imposed on self-employed or corporations. “These entities may able to make the full cost tax deductible,” Slome adds.
In addition to federal tax deductibility limits, a growing number of states now offer either tax deductions or tax credits to encourage state residents to purchase long-term care insurance.
According to the American Association for Long Term Care Insurance, the national trade organization, tax deductibility gives individuals and business owners one very important reason to consider ways to address future long term care needs.
“Americans are living well into their 80s, 90s and even longer when the likelihood of needing extremely costly long term care services is almost a guarantee,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group charged with creating awareness for long term care related issues. “The federal and state governments recognizes this and offers the tax incentives to encourage more people to plan.”
Individuals may be able to deduct long term care insurance premiums paid from their 2011 federal income taxes. The federal levels are based on your age, Slome notes, ranging from $340 to $4,240 per-person and increase for new policies purchased in 2012. Individuals face certain limitations that are not imposed on self-employed or corporations. “These entities may able to make the full cost tax deductible,” Slome adds.
In addition to federal tax deductibility limits, a growing number of states now offer either tax deductions or tax credits to encourage state residents to purchase long-term care insurance.
The American
Association for Long-Term Care Insurance has just published a state-by-state
listing of available tax deductions on the organization’s website at www.aaltci.org/tax.
To
learn more about long-term care planning and get long-term care insurance costs
from a designated expert visit the American Association for Long Term Care Insurance Information Center.
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