2010 TAX DEDUCTIBLE LIMITS FOR LONG-TERM CARE INSURANCE ANNOUNCED
October 20, 2009
The Internal Revenue Service (IRS) has announced increased deductibility levels for long-term care insurance policies purchased in 2010. "For the first time, the maximum deductible limit for an individual exceeds $4,000," explains Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance , the national trade organization.
"The federal government and an increasing number of states are sending a clear signal that individuals need to plan for long-term care and tax deductibility and tax credits certainly make long-term care insurance more attractive to millions," Slome adds. "It is a positive sign to see limits for long-term care insurance deductibility increase especially when pension contribution limits for 2010 were not increased."
The end of the year provides a double tax-saving incentive for consumers. There is still time to take advantage of tax deductions in 2009 and also benefit from the increased deductible limits next year.
The 2010 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
40 or less: $ 330
More than 40 but not more than 50: $ 620
More than 50 but not more than 60: $1,230
More than 60 but not more than 70: $3,290
More than 70: $4,110
Source: IRS Revenue Procedure 2008-66 (2009 limits) and 2009-50 (2010 limits)
The American Association for Long-Term Care Insurance 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.
Click here to go directly to the Association's Tax Information Center
Insurance and Financial Professionals
To join the Association for $49 (one year membership including the 2009 LTCi Sourcebook) click on this link to open the New Membership Online Form for the American Association for Long-Term Care Insurance
Reporters and other media who would like additional information or to arrange an interview with Jesse Slome, please call the Association offices at (818) 597-3227
The American Association for Long-Term Care Insurance is the national organization serving insurance and financial professionals. Click here to go directly to the home page of the American Association for Long-Term Care Insurance
Consumers interested in reading more about long-term care planning can click here to go directly to the Association's Consumer Information Center