For those who qualify, deductions can be sizeable, and they recur year after year.
For the taxable year beginning in 2017, the limitations under Section 213(d)(10) of the IRS tax code, regarding eligible long-term care premiums includible in the term “medical care,” are as follows:
Attained Age Before Close of 2017 Taxable Year / Limitation on Premiums
- 40 or less: $410
- More than 40 but not more than 50: $770
- More than 50 but not more than 60; $1,530
- More than 60 but not more than 70:$4,090
- More than 70: $5,110
“If you already have a policy,” says Robinson, “be sure to check out your eligibility. And don’t neglect to make your claim.”
What if you’re just thinking about getting a policy? “Take the tax angle into account,” Robinson says. “Find out if Uncle Sam might, in effect, pick up part of the tab.”
For 2018 the limitations are a bit higher than in 2017:
Attained Age Before Close of 2018 Taxable Year / Limitation on Premiums
- 40 or less: $420
- More than 40 but not more than 50: $780
- More than 50 but not more than 60; $1,560
- More than 60 but not more than 70:$4,160
- More than 70: $5,200
The deduction rules apply to every covered individual in a household. For example, a qualifying couple filing jointly could deduct up to $10,220 for 2017, and up to $10,400 for 2018; and so on for as long as the legislation remains in force.
“The original idea was to encourage Americans to protect themselves,” says Robinson, “and we believe the current administration will support this philosophy going forward.”
“During tax season,” says Robinson, “we’re glad to talk with consumers and financial advisors about policy costs and tax adjustments. We do not give tax advice, but can help explain the tax incentives. For tax advice, people need to consult their tax professional.”
The long-term care solutions recommended by Robinson include traditional long-term care insurance, life insurance or annuities with long-term care riders, critical illness insurance, and other options ranging from health savings accounts to Medicare supplement plans.
Les Robinson is a leading long-term care solutions agent in IL*,OH*,NY*,TX*,VA*,MI*,WA*,SC*,AK*,PA,NJ,FL,AZ,MD
serving consumers as well as organizations. “We’re glad to help them find the best, most affordable solution for their situation,” Robinson says.
Start planning for your future today by requesting free, no-obligation long term care insurance quotes from the top insurance carriers in your area today.
Call Les on Long Term Care Insurance 1-800-875-0140 or get a quote at www.lesltc.com