Published: February 08, 2010
Tax Reminder: A Big Portion of Your Long Term Care Insurance Premiums May Be Deductible
Taxpayers May Overlook Hundreds to Thousands of Dollars Per Year, Industry Leader Advises.
KIRKLAND, Wash., Feb. 8 (SEND2PRESS NEWSWIRE) -- Want to keep more of your money in these challenging times? Then check with your tax advisor if you have long term care insurance. You may be able to deduct a big chunk of your 2009 premiums. What if you don't have long term care insurance? Then consider getting it NOW to lock in tax benefits next year. Uncle Sam may in effect pick up the tab for much of your premiums for 2010. This reminder comes from LTC Financial Partners LLC (LTCFP), one of the nation's most experienced
long term care insurance agencies.
"For the 2009 tax year, an individual with a qualified policy may be able to deduct up to $3,980, depending on age," says Cameron Truesdell, CEO of LTCFP. "For a couple, the maximum amount doubles, to nearly $8,000." According to the Internal Revenue Service, for individuals the amounts of long term care insurance premiums that are deductible as medical expenses in 2009 can be as high as --
• $3,980 if you're 70 or over.
• $3,180 if you're over 60 but not over 70.
• $1,190 if you're over 50 but not over 60.
• $600 if you're over 40 but not over 50.
• $320 if you're 40 or under.
"Those who don't have policies, but want them, can set themselves up for substantial deductions next year," Truesdell says. For individuals, the amounts deductible as medical expenses in 2010 can be as high as --
• $4,110 if you're 70 or over.
• $3,290 if you're over 60 but not over 70.
• $1,230 if you're over 50 but not over 60.
• $620 if you're over 40 but not over 50.
• $330 if you're 40 or under.
"These deductions are not a one-time thing," Truesdell says. "They recur. You can take them each and every year that you pay premiums; and the deductible limits have been increasing annually."
Truesdell strongly urges individuals and companies to investigate ALL the tax advantages that may be available to them. Additional potential benefits, beyond the above federal deductions, include --
• If your state offers tax deductions or rebates, and you qualify, these are additive to your federal deduction, if you qualify.
• When a policy is designed to pay on a per-diem basis, a limited portion of the benefits may be excluded from taxable income.
• When a policy is paid for out of a Health Savings Account (HSA), there can be tax advantages.
• For businesses, there are tax breaks that can be especially attractive. For example, opportunities exist for some business owners to deduct premiums without having to satisfy the 7.5% medical expense threshold amount.
"With so much government support, we often wonder why more people don't get LTC policies," says Truesdell.
LTCFP does not offer tax advice but teams up with accountants and other tax experts to help their clients get all the deductions or other benefits available to them. "We've formed strategic alliances with banks, accountants, other financial advisors and tax preparers, and organizations such as the National Association of Estate Planning Attorneys," says Truesdell.
How can you make sure you don't miss out? "Ask your tax expert to check into every deduction that may apply in your case," Truesdell advises. "We're glad to help. We'll consult with anyone's accountant, tax attorney, or other advisor -- now or closer to the tax deadline."
In Truesdell's national organization, hundreds of experts are available by phone or Internet. Requests for help, at no charge, may be made at
www.ltcfp.us/ltcfp/taxbreaks.htm.
NEWS SOURCE: LTC Financial Partners LLC
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