Long Term Care Insurance May be Federal Income Tax Deductible

//Long Term Care Insurance May be Federal Income Tax Deductible

Long Term Care Insurance May be Federal Income Tax Deductible

I have discussed in the past that Long Term Care Insurance may be state income tax deductible, but I have never really went into the federal tax aspects Long Term Care Insurance.

Luckily, I don’t have to.  Every year there is an update released by The Corporation for Long-Term Care Certification.

https://myjourneytomillions.com/2010_One_Page_Tax_Summary.pdf

My Opinion of Long Term Care Inusrance

I have never priced it out, but I know Long Term Care Insurance is expensive and therefore not an option for most people.  Those that is an option for usually have sustainable assets that say they’d rather self insure.

Notwithstanding the above, I think LTCi is a great product for those with the cash flow to pay the premiums.

I don’t have any stats (I am sure they are out there), but I think where you see LTCi sold the most is in group plans with smaller benefits, or and it is a bigger or, is when the client is the owner of a business and we can use it as a tax deduction.

The most important thing to remember about this post is – if you are already paying for Long Term Care Insurance you better make sure you are getting the proper deductions.

Do you have Long Term Care Insurance? Are you taking the proper deductions?

By |2016-03-07T22:18:08+00:00January 7th, 2010|Taxes|4 Comments

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Evan is the owner of My Journey to Millions which was started to track his journey from a broke debt ridden law school graduate to building a positive balance. Need more Evan? Follow him on Twitter, Contact him or get new posts directly to your email

4 Comments

  1. Financial Samurai January 7, 2010 at 6:03 pm - Reply

    Will be exciting to get that deduction, for my parent’s sake. No brainer.

    • Evan January 7, 2010 at 7:18 pm - Reply

      I am curious as to how many people fail to take that deduction?

      I think the big one for people would be the business owner putting LTCi through the business for an employee-spouse (doesn’t work wtih S-Corps).

    • EOW January 11, 2010 at 10:46 am - Reply

      That deductions has been there in past years as well. 2010 was a 3% increase from 2009. Depending on their situation it should be brought up in a discussion with their tax professional. A good question to ask is why the tax professional didn’t bring this to their attention?

      • Evan January 11, 2010 at 4:53 pm - Reply

        EoW,

        Unlike the usual problems I run into on a day to day basis at work, I don’t have a particular example in mind when I speak of tax advisors failing to utilize this deduction.

        But I wouldn’t be suprised (as I say above) if there are a tons of CPAs who miss it.

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