2008 TAX DEDUCTIBLE LIMITS FOR LTCi ANNOUNCED
November 9, 2007
The Internal Revenue Service (IRS) has announced increased deductibility levels for long-term care insurance policies purchased in 2008. According to Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance (AALTCI), “Millions of small and mid-sized business owners are still unaware that the cost of long-term care insurance protection for themselves and their spouse may be fully tax deductible."
“Tax advantaged long-term care insurance is one of the few remaining significant tax-savings benefits for owners and self-employed individuals," AALTCI's Director states. "Discounts for small groups are increasingly available for businesses, even those with 10 or fewer employees."
There is still time to tax advantage of tax deductions in 2007 and also benefit from the increased deductible limits next year. In addition to the federal tax deduction many states now offer tax incentives for individuals purchasing tax-qualified long-term care coverage.
The 2008 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 & Max. Limit
40 or less: $ 310
More than 40 but not more than 50 $ 580
More than 50 but not more than 60 $1,150
More than 60 but not more than 70 $3,080
More than 70 $3,850
Source: IRS Revenue Procedure 2007-66 (2008 limits)
The American Association for Long-Term Care Insurance (www.AALTCI.org) is the national association serving insurance and financial professionals who provide long-term care financing solutions.