Long Term Care Tax Deduction Levels Increased
Good news for those who have recently acquired an LTC insurance policy for their future LTC needs. The Internal Revenue Services (IRS) announced that it has increased the levels for long term care tax deduction. This means that there would be more tax-savings measures that small business owners may benefit from.
According to the American Association for Long Term Care Insurance (AALTCI) Executive Jesse Slome, this is one of the significant and timely developments in the LTC insurance industry. This will make way for the small business owners and other purchasers to have greater tax savings.
LTC insurance plans are known to be quite expensive and are usually purchased from private insurance companies. The rates and other prices of the monthly premiums are some of the major reasons why it is hard to convince and encourage some United States residents to secure themselves of an LTC insurance plan. They prefer to prioritize and give more attention to the basic necessities that their families need.
But because of the programs created and administered by the government that offer cheaper rates and more affordable policy options, more people will now be given the chance to experience owning an LTC insurance plan and use its benefits in the coming years.
Those who are considered average income earners and also those who belong below the poverty level do not have to spend large amount of their income in paying their insurance plan’s monthly dues. They may also avail other additional benefits that are exclusively available with these government run policy alternatives.
Long term care tax deduction is also one of the things that elder care advocates seek and request through the Congress. They say that more people, especially those who do not have flexible and enough savings, will benefit once higher levels of tax deductions are implemented.
This measure would definitely encourage more Americans to inquire and learn more about having an LTC insurance policy. They can now see that the government is being considerate to their needs and also think about their financial capacities most especially now that economic turmoil and financial crisis are not yet fully resolved.
The new levels of tax deductions are based on the insured person’s age before the closing of the taxable year. For those who are less than 40 years old gets $340deduction; more than 40 but not more than 50 years old, a tax deductible of $640 is granted; more than 50 but not more than 60 years will have $1,270; more than 60 but not more than 70 will get $3,390, and lastly, more than 70 years old will be given $4,240 tax deductions. The rates have increased by at least $100 as compared to last year’s tax deduction limits.
Having higher long term care tax deduction is a good way to win the hearts of the 32 million residents who are not still insured with LTC policies. This latest development will definitely give more room for the willing individuals to plunge in the LTC insurance industry.
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