Los Angeles, CA, August 23, 2018 --(PR.com
)-- Tax breaks are the most significant indication that the U.S. government is trying to motivate individuals to do something, declares Jesse Slome, director of the American Association for Long-Term Care Insurance. The Association director was making a special presentation to insurance professionals who assist clients with long-term care planning.
"There are already a number of Internal Revenue Service or IRS-approved tax deductions and tax incentive programs available for consumers," declares Slome. "A significant one is more attractive this tax-year and should not be overlooked as a tax-smart way to plan the real risk of one day needing long-term care," declares Slome.
One of the most significant IRS-approved tax advantages is the tax deductibility of tax-qualified long-term care insurance premiums. "Not all plans marketed today as providing potential long-term care benefits are deductible, but those that are provide some enormous incentives for consumers."
To be deductible, consumers must purchase a traditional, health-based long-term care insurance policy that meet tax-qualified status. Roughly 60,000 policies sold in 2018 will meet the tax-qualified status. All or part of the premium paid may then be deductible as part of medical expenses paid by individuals.
"According to the latest IRS data, some 8.8 million taxpayers took advantage of deductions for medical and dental expenses saving themselves an aggregate of $87 billion," Slome shared with a group of long-term care insurance professionals. "A temporary expansion of the medical expense deduction could benefit many more this year."
A Greater Tax Incentive in 2018
The IRS allows you to deduct qualified medical expenses that exceed 7.5% of your adjusted gross income for 2018. Beginning Jan. 1, 2019, all taxpayers may deduct only the amount of the total unreimbursed allowable medical care expenses for the year that exceeds 10% of their adjusted gross income.
For thousands with existing qualifying insurance protection, their dividends paid currently could be tax deductible. But, for those considering buying coverage now, the real tax advantage comes in later years according to Slome.
"Say you buy long-term care insurance today at age 60 while you are still healthy and working. Chances are your long-term care insurance premiums may not be currently deductible," Slome explains. "But, fast forward to retirement when you are living on Social Security and savings with no employment income. Now is when the insurance premiums could be a significant eligible deduction saving you money at a time when it matters more than ever."
Slome points to ideal candidates who should be made aware of the tax-advantage potential. "There are 25 million Americans reporting income of between $75,000 and $500,000 on their latest tax filings," Slome shared with the group. "Many of these individuals or couples are in their early 60s and offer the greatest likelihood of being able to afford insurance protection with the future potential to take advantage of the tax deductibility when their retire."
The American Association for Long-Term Care Insurance advocates for the importance of planning and helps consumers connect with knowledgeable professionals who are independent advisors. The Los Angeles-based organization conducts research and have the most comprehensive resources available on its website utilized by hundreds of thousands of consumers annually.
Consumers looking for local long-term care insurance agents or cost comparisons should visit the Association's website at www.aaltci.org or can call the organization's national headquarters at 818-597-3227.