Cost of long term care insurance
As the end of the tax year approaches, many Americans may neglect a hefty deduction, the cost of long term care insurance, according to Brian Wolfe, Illinois-based Partner of LTC Financial Partners, the nation’s most experienced long term care insurance brokerage.
“Those with long term care policies who itemize their deductions may be able to deduct a sizeable chunk of their premiums,” says Wolfe, “but many do not know this. They could be passing by hundreds to thousands of dollars.” According to section 213(d)(10) of the Internal Revenue Code, the 2006 deductible amounts can be as high as –
* $3,530 if you’re 70 or over before end of taxable year
* $2,830 if you’re over 60 by not over 70 before end of taxable year
* $1,060 if you’re over 50 but not over 60 before end of taxable year
* $530 if you’re over 40 but not over 50 before end of taxable year
* $280 if you’re 40 or under before end of taxable year.
For some people, especially business owners, the tax breaks can be quite substantial, Wolfe emphasizes. “Bottom line, it can be like getting the coverage for practically nothing,” he says.
How can you learn the exact federal and state tax breaks that may apply in your case? “It usually takes two experts to find out for sure,” says Wolfe, “your tax accountant and a specialist who keeps up with the latest LTC legislation.” People can start by phoning Wolfe at 618-334-2969 for quick feedback and then, if the caller wishes, Wolfe will confer with the caller’s tax preparer. There is no charge for this service.
Brian Wolfe is a long term care planning expert and partner with LTC Financial Partners, the nation’s only producer and employee-owned national organization of long term care specialists. He is licensed in Illinois and Missouri.