2009 TAX DEDUCTIBLE LIMITS FOR LTCi ANNOUNCED
October 16, 2008
The Internal Revenue Service (IRS) has announced increased deductibility levels for long-term care insurance policies purchased in 2009. "To encourage individuals to purchase long-term care insurance the federal government and many states offer tax deductions and tax incentives that increase yearly," explains Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance (AALTCI)."
Click here to read a comprehensive review of tax deductibility rules and 2008 and 2009 tax limits for individuals and business owners
There is still time to take advantage of tax deductions in 2008 and also benefit from the increased deductible limits next year. The deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:
2009 Eligible Long-Term Care Insurance Premiums
Attained Age Before Close of Taxable Year & Max. Limit
40 or less: $ 320
More than 40 but not more than 50 $ 600
More than 50 but not more than 60 $1,190
More than 60 but not more than 70 $3,180
More than 70 $3,980
Source: IRS Revenue Procedure 2008-66 (2009 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. The Association does not provide tax advice. Always consult with your tax adviser.