Los Angeles, CA, September 09, 2018 --(PR.com
)-- The American Association for Long-Term Care Insurance announced support for the AARP-coalition seeking continuation of the medical expense tax deduction. Premiums for approved tax-qualified long-term care insurance may be a deductible expense for individuals, a significant benefit for seniors during retirement.
"There are millions of seniors who have limited retirement income who also face medical costs," declares Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI). "They need this deduction and taking it away while giving tax deductions to millionaires would be an affront to American seniors."
The AARP-led coalition reportedly delivered a letter this week to leading U.S. Senators asking them to continue their fight to maintain the medical expense deduction. The coalition includes the American Health care Association, the Alzheimer’s Association, the American Heart Association, the American Psychological Association, the March of Dimes and the National Committee to Preserve Social Security and Medicare.
"We are tiny by comparison but this is a most worthy effort we are proud to support," said Slome. The organization advocates for the importance of long-term care planning and supports insurance professionals who offer various planning options. "There are millions of seniors who purchased tax-qualified long-term care insurance policies who would lose the option to deduct premiums at a point when living off limited retirement income and Social Security."
According to the Association, roughly eight million Americans have some form of long-term care insurance. Most policies sold over the past decade met the IRS established tax-qualified standards, Slome notes. "Currently, only a small percentage of long-term care insurance policies now sold meet the requirements to be tax deductible but it still a vital benefit that should not be taken away from America's retired seniors."
For a couple who are both older than 70 and paying for long-term care insurance, the maximum allowable amount eligible for the deduction calculation would be $10,400. For an individual, age 65, the maximum allowable amount would be $4,160 according to AALTCI. "The IRS allows you to deduct qualified medical expenses that exceed 7.5% of your adjusted gross income for 2018," Slome explains. "Beginning January 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."
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.
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.