![]() ![]() Individual taxpayers can treat premiums paid for tax-qualified long-term care insurance for themselves, That portion of the LTCi premium that exceeds the eligible LTCi premium is not included as a medical expense. LTCi premiums, as defined by Internal Revenue Code 213(d), based on the age of the insured individual. The amount of the LTCi premium treated as a medical expense is limited to the eligible To the extent that they exceed current amount required to meet the individual's Adjusted Gross Income (AGI). Individual who itemizes tax deductions, medical expenses are deductible ![]() Tax-qualified LTCi premiums are considered a medical expense. Individual Purchase AS YOU AGE … YOUR TAX DEDUCTIBLE LIMIT INCREASES STATE TAX DEDUCTIBILITY RULES - Listings For All States Offering Tax Benefits.Employer-Pay Contributory Arrangement on Behalf of an Employee.Tax Advantages For Subchapter C Corporations.Tax Advantages For Partnership - Limited Liability Company (LLC) - Subchapter S Corporation.Hybrid LTC policies (life insurance policies offering a LTC benefit) may offer some tax deductible benefits.Ĭlick here to see examples of deductibility for linked-benefit LTC policies. Those LTC insurance premiums can now help you reduce your taxes.Ī More Detailed Look At Tax Deductibility of Hybrid LTC Policies ![]() Again, your income is likely to be low after age 70 and one of you will likely have medical - dental - vision expenses. If you are married the amount could be as much as $11,920 (2023 figure). With little (if any) income, that makes this an enormously valuable potential deduction. If you are single (alone) after age 70, up to $5,960 (2023 limit) could be counted towards deductible medical expenses. ![]() You should ask the insurance professional you work with if the policy meets tax-qualification standards and to show you where it says that premiums may be tax deductible. REMEMBER NOT ALL LONG-TERM CARE INSURANCE POLICIES HAVE THIS AS A BENEFIT. Or, the insurance premium will just make your deduction greater. These amounts could help you qualify for the Medical Expense deduction. NOW ADD IN YOUR TAX-QUALIFIED LTC INSURANCE PREMIUM. For many of American seniors that means they can deduct these expenses. At the same time, after retirement, medical (including dental, vision and hearing) expenses often increase. Medical expenses that exceed a prescribed percentage can be tax deductible. But here's why a traditional, tax-qualified long-term care insurance policy could be enormously beneficial to you - especially when you are 70 or older (and one day you will be 70!). Tax experts predict fewer Americans will itemize their expenses. 2022 / 2023 - WHY SOME LTCi OFFERS REAL TAX BENEFITS AFTER AGE 70 LTC insurance offers a future tax benefit few seniors are aware of! Please consult a tax advisor regarding your particular circumstances. This information is provided for informational purposes only and should not be construed as tax advice. The American Association for Long-Term Care Insurance offers this information to help you better understand the various tax implications relating to LTCi policies. Included provisions for favorable tax treatment of qualified Long-Term Care insurance (LTCi) contracts. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) Click here to complete our simple online questionnaire and get the ball rolling. If you would like to capitalize on tax advantaged savings available to those purchasing LTC insurance protection, now is the time to start the process. Tax codes now offer tax incentives to encourage Americans to take personal responsibility for their future long-term care needs. Recognizing that government can't pay the bill for long-term care, federal and a number of state Long-Term Care Insurance Tax-Deductibility Rules - LTC Tax Rules ![]()
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