2011 Tax Deduction Limits For Long-Term Care Insurance

November 2, 2010.  The Internal Revenue Service (IRS) announced increased deductibility levels for long-term care insurance policies purchased in 2011.  

“For taxable years beginning in 2011, the limitations have been increased,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI), the industry’s trade association. 

“Tax advantaged long-term care insurance remains one of the few remaining significant tax-savings benefits especially meaningful for small business owners.”

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
40 or less        $   340
More than 40 but not more than 50      $   640
More than 50 but not more than 60      $1,270
More than 60 but not more than 70      $3,390
More than 70  $4,240

Source:  IRS Revenue Procedure 2010-40

The American Association for Long-Term Care Insurance (http://www.aaltci.org/) 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:  http://www.aaltci.org/tax .

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