Tax Deductions from Long Term Care Insurance

Considering long term care insurance (LTCI) for your future is not only good because of the fact that it can alleviate long term care (LTC) expenses.  It also happens to be the best-designed long term care tax reduction tool.

 

 

Through the premiums which they pay into their coverage, owners of LTCI policies can qualify for a huge tax deductible.  This is a consolation which the government bestows upon individuals who responsibly plan their future health care needs.

 

 

Paying taxes is burdensome but people pay anyway as this will be beneficial to their children and grandchildren alike.  Now the federal government is much aware of the huge sacrifice that taxpayers are making so through the Internal Revenue Service (IRS) they have managed to provide tax exemptions for individuals who purchase LTCI policies.

 

 

LTCI premiums are treated as eligible medical expenses and thus deductible as clearly stated in Section 213(d) of the IRS Code.  However, it is important to note that only premiums paid into tax-qualified policies shall be treated as medical expenses.  If you are in doubt of the nature of your policy, check with your insurer.

 

 

According to the experts, tax-qualified policies are guaranteed renewable and these must stipulate that the insured should require 90 days of care following an event which results in physical limitations or cognitive impairment, and hinders the individual from performing two or more activities of daily living (ADL) which are eating, dressing, bathing, continence, toileting, and transferring.

 

 

Instant Long Term Care Tax Deductions

 

 

You can cite the IRS Code Section 213(d) for a detailed list of medical expenses that are treated as income tax deductible.  It is actually a very long list and should you be subjected to any of these expenses in the future, you can instantly include it in your itemized deduction.

 

 

If you think about it, though, there is no point in waiting for an unfortunate event to take place in your life just so you can cut down on taxes.  You can enjoy huge tax deductions right now while you are young, healthy and on the road to prosperity.

 

 

Should you wait till later when you are in dire need of a wheelchair, oxygen equipment, or therapy sessions, you will not be able to enjoy your tax deductions because you will probably be too frail already.

 

 

The main objective of buying LTCI is to be able to receive quality in-home care, assisted living, nursing home care, or hospice care someday without wiping out your assets.  However, if you will take time to study this type of insurance product in its entirety, you will realize it has more to offer than just quality LTC services and asset protection.

 

 

LTCI policies were also created to reduce people’s annual taxes by a significant amount.  Every year, the IRS increases the deductible limit of LTCI premiums in order to keep pace with inflation.

 

 

Apply for an LTCI policy today and qualify for a long term care tax advantage.  If you have questions get in touch with a licensed broker who is affiliated with the country’s leading LTCI carriers.

 

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