Los Angeles, CA, October 22, 2011 --(PR.com
)-- According to the American Association for Long-Term Care Insurance, the Internal Revenue Service (IRS) announced increased deductibility levels for long-term care insurance policies purchased in 2012.
"For taxable years beginning in 2012, the limitations have been increased," explains Jesse Slome, executive director of the long term care insurance 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 2012 deductible limits under Section 213(d)(10) for eligible long-term care premiums included in the term ‘medical care’ are as follows:
Attained Age Before Close of Taxable Year
40 or less - $ 350
More than 40 but not more than 50 - $ 660
More than 50 but not more than 60 - $1,310
More than 60 but not more than 70 - $3,500
More than 70 - $4,370
Some eight million Americans currently own long term care insurance purchased on an individual basis or through a plan offered by their employer according to AALTCI. "Some 500,000 new policies will be purchased this year including 45,000 new enrollees in the Federal LTC Insurance program," Slome remarked.
A complete explanation of tax deductible rules for individuals and business owners can be found on the Association's website.