Los Angeles, CA, November 19, 2018 --(PR.com
)-- Increased tax deductible limits that can provide significant tax savings for owners of traditional long-term care insurance policies were revealed today by the American Association for Long-Term Care Insurance.
"A senior couple who are both older than 70 could be able to deduct over $10,000 from their Federal income taxes, a significant benefit that older retired Americans can really benefit from," declared Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).
Slome noted that the special tax advantages approved by the IRS are only available with tax-qualified health-based long-term care insurance. "Roughly six million individuals have a traditional long-term care insurance policy though they have been losing favor to linked benefit life insurance and annuity policies that do not offer the tax deductibility benefit," Slome shared.
"Few older individuals are aware of the tax deductibility benefit," Slome notes. "When you are younger and working, the benefit is nominal if any but once you retire and may have other health expenses, the tax savings benefits could be huge." According to the Association analysis, many older Americans who have health expenses can add their long-term care insurance premium costs to qualify for the IRS approved deduction.
According to AALTCI, premiums paid for traditional long-term care insurance are includable in the term "medical care." The following are the just announced 2019 limits:
Attained Age Before Close of Taxable Year 2019 Limit
40 or less $420
More than 40 but not more than 50 $790
More than 50 but not more than 60 $1,580
More than 60 but not more than 70 $4,220
More than 70 $5,270
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 prior year’s tax deductible limits, 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.