Tuesday, March 24, 2015

Millions Expected to Forego Long Term Care Insurance Tax Deductions

Millions of people are expected to forego a few hundred to a few thousand dollars as tax deductions for long-term care insurance policyholders. Leaders of ACSIA Partners found out that this is due to different psychological obstacles. 

This tax deduction incentive is too good to pass up. Below you can find the limitations under Section 213(d)(10) of the IRS tax code, about eligible long term care costs includible in the term “medical care:”
Attained Age Before Close of Taxable Year / Limitation on Premiums:

40 or less: $380
More than 40 but not more than 50: $710
More than 50 but not more than 60 $1,430
More than 60 but not more than 70: $3,800
More than 70: $4,750

ACSIA partners come up with the conclusion that people pass up the tax deduction incentive because they are not aware of these deductions. With greater knowledge, more people will surely take advantage of long-term care insurance tax deductions.

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