New Deductibility Levels for Long Term Care Insurance
The Internal Revenue Service (IRS) recently announced increased deductibility levels for long-term care insurance policies purchased in 2011. Some long term care insurance help those insured pay for home care services.
"Tax advantaged long-term care insurance remains one of the few remaining significant tax-savings benefits especially meaningful for small business owners. For taxable years beginning in 2011, the limitations have been increased," explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI), the industry's trade association.
The deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:
Attained Age Before Close of Taxable Year 2011 Deductible Limits
"Tax advantaged long-term care insurance remains one of the few remaining significant tax-savings benefits especially meaningful for small business owners. For taxable years beginning in 2011, the limitations have been increased," explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI), the industry's trade association.
The deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:
Attained Age Before Close of Taxable Year 2011 Deductible Limits
- 40 or less $ 340
- More than 40 but not more than 50 $ 640
- More than 50 but not more than 60 $1,270
- More than 60 but not more than 70 $3,390
Source: IRS Revenue Procedure 2010-40
We would like to thank Jesso Slome, Executive Director of the American Association for Long-Term Care Insurance (AALTCI). AALTCI is the national association serving insurance and financial professionals who provide long-term care financing solutions. A complete explanation of tax deductible rules for individuals and business owners can be found on the Association's website: http://www.aaltci.org/tax
