"For taxable years beginning in 2012, the limitations have been increased," explains Jesse Slome, executive director of the long term care insurance industry's trade association http://www.aaltci.org. “Tax advantaged long-term care insurance remains one of the few remaining significant tax-savings benefits especially meaningful for small business owners."
The 2012 deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:
Attained Age Before Close of Taxable Year
40 or less - $ 350
More than 40 but not more than 50 - $ 660
More than 50 but not more than 60 - $1,310
More than 60 but not more than 70 - $3,500
More than 70 - $4,370
Some eight million Americans currently own long term care insurance purchased on an individual basis or through a plan offered by their employer according to AALTCI. "Some 500,000 new policies will be purchased this year including 45,000 new enrollees in the Federal LTC Insurance program," Slome remarked.
A complete explanation of tax deductible rules for individuals and business owners can be found on the Association's website at http://www.aaltci.org/
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The American Association for Long-Term Care Insurance http://www.aaltci.org is a trade organization. The Association's Consumer Information Center is the #1 source for information and can be accessed at http://www.aaltci.org/