Tax deductibility of Long Term Care Insurance

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Tax Deductibility of Long Term Care Insurance
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Long Term Care Insurance (LTCi)

• LTCi is a retirement planning tool used to
  protect your assets from the high cost of needing
  long term care
• Examples of long term care services are home
  health care, assisted living, hospice, adult day
  care, or nursing homes

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Two Options

• LTCi policies are either IRS tax-qualified or
  non-tax-qualified
• One way to deduct your LTCi premiums is by owning
  a HSA

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How They Are Deducted

• Tax-qualified long term care premiums are
  considered a medical expense
• Medical expenses are deductible for an individual
  who itemizes tax deductions

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Aging

• As you age, your tax deductible limit increases
• By the time you are over 70 you can deduct 4,550

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Individual Deduction

• Considered a medical expense and can be deducted
  if you itemize
• Deduction increases with age and becomes more
  meaningful

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Self-Employed Deduction

• Great deduction for self-employed because it
  comes off the top of your income
• Can include eligible premiums paid for your
  spouse and dependents too

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C Corporation Deduction

• A C corporation gives the greatest tax deduction
• You can deduct 100 percent of the LTC premiums

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State Income Tax Credits

• Half of the states offer some form of tax credit
• Some range as high as 25 percent of the total
  premiums paid

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Disclaimer

• This is NOT tax advice in anyway and should be
  used only as general information.  Please consult
  with your tax pro and or the IRS for more
  information.

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For More Information

• Visit www.ltctree.com
• Call 800-800-6139