2014 Long Term Care Insurance Tax Deductions Announced

November 1, 2013.  Los Angeles, CA — The American Association for Long Term Care Insurance, a national trade group, announced approval of increased tax deductions for long term care insurance policies purchased in 2014.
“For taxable years beginning in 2014, the limitations have been increased again by the Internal Revenue Service,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance.  “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       2013 Deductible Limits         2014 Deductible Limits
40 or less                                                                            $   360                                $   370
More than 40 but not more than 50                             $   680                                $   700
More than 50 but not more than 60                              $1,360                                 $1,400
More than 60 but not more than 70                             $3,640                                 $3,720
More than 70                                                                      $4,550                                 $4,660
Source:  IRS Revenue Procedure 2012-41 (2013 limits) and 2013-35 (2014 limits)

In addition, according to Slome, the per-diem limitation under Section 7702B(d)(4) for periodic payments received under a qualified long term care insurance contract have been increased for 2014 to $330 (the 2013 limit is $320).
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 long term care insurance tax deduction limits and rules for individuals and business owners can be found on the Association’s website.  Consumers interested in a no obligation long term care insurance cost comparison can call the Association at (818) 597-3227 or request an online appointment with one of the organization’s designated long term care insurance specialist members.

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