Los Angeles, CA, November 02, 2016 --(PR.com
)-- To help consumers maximize the potential tax deduction obtainable for the purchase of long-term care insurance the American Association for Long-Term Care Insurance has just posted 2016 and 2017 tax-deductible limits.
"A key benefit of having some tax-qualified long-term care insurance policies is the ability to deduct the cost of premiums," explains Jesse Slome, director of the American Association for Long-Term Care Insurance. Slome announced that the Association has just updated it's website with the new limits for 2017.
Premiums paid for traditional long-term care insurance are includable in the term ‘medical care’ Slome notes. The maximum amount an individual can deduct will be $5,110 in 2017 a nearly five percent increase over the 2016 limit of $4,870.
"The IRS allows individuals to deduct medical expenses," Slome notes. "Millions of seniors have medical expenses and when the cost of long-term care insurance is included, they can benefit from a significant tax deduction."
"The new limits are a real benefit for the 23 million individuals age 65 or older who file federal tax returns," shares Slome. The AALTCI director has analyzed IRS tax data for the latest tax year (2014). "Nearly 5.1 million tax filers filing returns with incomes of between $40,000 and $100,000 reported medical expenses in excess of the AGI limits. For retired seniors the combination of reduced income and increased medical costs means the cost of traditional long-term care insurance can be all or mostly tax deductible."
The American Association for Long-Term Care Insurance advocates for the importance of planning and supports insurance and financial professionals who provide long-term care financing solutions.
To see the 2016 tax deductible limits for long-term care insurance visit the organization's website (www.aaltci.org/tax) or call the organization at 818-597-3227 to connect with a long-term care insurance professional who can provide no-obligation and cost comparisons.