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Long Term Care Insurance Tax Deduction May Be Overlooked
Twenty million Americans over age 65 will file tax returns and are reminded that long term care insurance premiums may be an overlooked tax deduction.
"Long term care insurance premiums can be a tax deductible expense and we believe a percentage of seniors neglect to take advantage of the deductibility,"
According to the Association, the Federal government and a number of states offer tax incentives as a way of encouraging more individuals to take personal responsibility for future long term care needs. "For 2012, the maximum an individual could deduct is $4,370 or $8,740 for a couple where both spouses are insured," Slome notes. "They may not have been able to capitalize on the deductibility during their working years when income precluded reaching the allowable medical expense ratio but after retiring it's not all that difficult to achieve."
Slome, who has authored The Guide To Tax-Qualified Long Term Care Insurance, a publication that has been distributed to over two million consumers, believes the tax deductibility of long term care insurance is one of the best-kept tax reduction strategies. "That is especially true for self-employed individuals and those who own and operate small businesses where the cost of insurance may be fully tax deductible as a normal business expense," Slome adds. "This is one of the last ways an individual can derive a benefit for themselves and a tax deduction to boot."
The national long term care insurance expert notes that the tax deductible limits are increased each year to keep pace with inflation. "The 2013 maximum that a couple can deduct is $9,100 but most people will buy insurance protection that costs far less than this amount," Slome admits.
Consumers seeking information on tax-advantaged long-term care insurance http://www.aaltci.org/