As we enter the last month of tax season leading up to the infamous April 15th deadline, most Americans are seeking ways to increase their deductions and make the most out of this otherwise unpleasant task known as filing income taxes. As the financial crisis and its subsequent recession wane on into 2011, people need all the help they can get, financially. Some good news with regard to Long Term Care Insurance and tax deductions has recently emerged.
For tax years beginning in 2011, the limits on Long Term Care Insurance have been increased. Here is a comparison of the 2010 and 2011 (and beyond) allowances. 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
2010 Deductible Limits
Source: IRS Revenue Procedure 2010-40 (2011 limits) and 2009-50 (2010 limits)
Compare the 2011 and beyond numbers with this year’s 2010 figures above and one can see that Long Term Care Insurance is set to pay even greater dividends on your tax return in the future. In addition to the “sliding age scale” above, if your total expenses for all types of medical expenditures for the year exceed 7.5 percent of your adjusted gross income, you could take advantage of an important tax break that most people fail to capitalize on. See our page on tax deductions and Long Term Care Insurance policies for more information.
These tax breaks and deductions only add to the long, laundry list of reasons why Long Term Care Insurance is a smart move for a sensible retirement portfolio. So, start taking advantage of this Long Term Care Insurance premium tax credit by planning for your future and securing all that you’ve worked so hard to achieve for your retirement today. LTC Tree can help you find a Long Term Care Insurance plan that is right for you, no matter your age or financial status. If you’d like to learn more about our affordable Long Term Care Insurance policies, simply fill out our form. Thank you for reading today’s blog. We really appreciate it.
