Individual Taxpayers for LTC insurance
Deductibility of Premium Payments Individuals who purchase and pay for Tax-Qualified Long-Term Care Insurance policies for themselves, their spouses, and their tax dependents may claim the premiums paid as deductible personal medical expenses if the Individual itemizes his or her taxes (See Internal Revenue Code (IRC) Sec. 213(a) and IRC Sec. 213(d)(1)(D)).
However, any Tax-Qualified Long-Term Care Insurance expenses are deductible only to the extent that the individual's total unreimbursed medical care expenses exceed 7.5% of his or her Adjusted Gross Income.
Further, the amount of the Tax-Qualified Long-Term Care Insurance premiums that may be deducted is subject to the following dollar limits based on the insured's attained age before the close of the tax year (IRC Sec 213(d)(10)).
Age
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Eligible Premium 2012 Limit
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Eligible Premium 2011 Limit
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< 40
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$350
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$340
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41 - 50
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$660
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$640
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51 - 60
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$1,310
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$1,270
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61 - 70
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$3,500
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$3,390
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> 70
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$4,370
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$4,240
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We do not provide tax or legal advice. Any decisions whether to implement these ideas should be made by the client in consultation with professional financial, tax, and legal counsel.
“Not having a plan for extended care will have an impact on your family, health and your best thought out retirement plan.
Living a long life could well be in your future.
Planning for it is now a necessity
Call Les Robinson to help develop a LTC plan 1-800-836-2040 ext 3014
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