Los Angeles, CA, July 15, 2017 --(PR.com
)-- More American tax filers are deducting medical and dental expenses and, as a result, may be able to deduct long-term care insurance premiums according to a report issued today by the American Association for Long-Term Care Insurance, the national industry organization.
"A senior can deduct up to $5,110, or as much as twice that for a couple, of their long-term care insurance cost which is a significant savings," explained Jesse Slome, director of the American Association for Long-Term Care Insurance. Slome was sharing a report with top long term care insurance agents based on the latest data available from the Internal Revenue Service.
According to Slome, some 8.66 million Americans took itemized deductions when filing their 2015 federal returns. "While the limits one has to meet to deduct health care related expenses have increased, the number of 2015 tax filers who took medical deductions actually increased by 1.6 percent over the prior year," Slome noted.
The national long-term care insurance expert shared the relevance of this data to agents who market and sell tax-qualified long-term care insurance. "While individuals buying long-term care insurance may not be able to deduct their costs in early years, they are far more likely going to do so after retirement," Slome explained. "After retirement, income drops and often there are significant medical and dental expenses that mean you'll be far more likely to meet the tax deduction limits."
Individuals who have certain forms of tax-qualified long-term care insurance can include the cost of premiums paid when calculating eligible medical and dental expenses. The limits are based on age at the close of the taxable year. "An individual who is more than 70 years old can deduct up to $5,110 of their tax qualified long-term care insurance premiums," Slome shared. The minimum amount eligible to be included is $410 a year for an individual age 40 or less.
Not all insurance policies that may provide a long-term care benefit are considered tax qualified and eligible for the tax deductibility. Life insurance policies that provide a long term care benefit, sometimes referred to as a linked benefit policy, generally do not meet the tax deductible eligibility requirements.
To learn more about tax qualified long-term care insurance and connect with an insurance professional visit the Association's website at www.aaltci.org or call 818-597-3227.
The American Association for Long-Term Care Insurance is a member-supported organization created in 1998. Slome also serves as director of the American Association for Medicare Supplement Insurance and the National Advisory Center for Short Term Care Information.