Frederick, MD 
301-663-9230Increased tax deduction for long term care insurance
However, there is a limit on how large a premium can be deducted, depending on the age of the taxpayer at the end of the year.
However, there is a limit on how large a premium can be deducted, depending on the age of the taxpayer at the end of the year.
Social Security benefits may be stagnant, but the IRS is increasing the amount you can deduct on your 2011 taxes as a result of buying long-term care insurance. Premiums for "qualified" long-term care insurance policies (see explanation below) are tax deductible provided that they, along with other unreimbursed medical expenses, exceed 7.5 percent of the insured's adjusted gross income. These premiums — what the policyholder pays the insurance company to keep the policy in force — are deductible for the taxpayer, his or her spouse and other dependents. (If you are self-employed, the tax-deductibility rules are a little different: You…
The costs of providing care have been rising far less than some of the increases in the long-term care insurance premiums.
Long-term care insurance (LTCI), also known as nursing home insurance, is the only form of insurance that will pay for long-term nursing home care. If you are single, the odds are 50 percent that you will need long-term nursing home care at some point in your life. If you are age 65 and married, the odds are 75 percent that you or your spouse will need long-term nursing home care. The average nursing home stay is 2.5 years, at an estimated national average of more than $75,000 a year. And yet, most people do not have long-term care insurance. One…
However, there are no right and wrong answers in choosing either LTCI or MT. Each client has their own situation, concerns, preferences, circumstances, and financial issues. The key is protecting your assets from the nursing home cost.
