• Select a Product

    We offer FREE iQuotes in
    one of the following areas.
    Please select a service or
    call 1 (800) 352-9742

  • Medicare Coverage

    Selecting a Medicare health insurance plan can be easy. Request an iQuote from a representative today.

    REQUEST iQUOTE
  • Term Life Insurance

    You can protect the ones you love with term life insurance. Request an iQuote from a representative today.

    REQUEST iQUOTE
  • Long Term Care

    Preserve your independence & choices with long term care insurance. Request an iQuote from a representative today.

    REQUEST iQUOTE
Close

2013 Tax Deduction for Buying Long Term Care Insurance

No Comments

Tags: Long Term Care, long term care insurance

If you are considering buying a long term care insurance policy this year, don’t forget to figure in the potential tax deduction you can receive based on your age and the premiums you’ve paid for the year.

 The IRS just announced long term care insurance deduction rates for 2013.

The amount of the deduction is set each year by the Internal Revenue Service (IRS).  It is in addition to any state long term care insurance deduction or credit for which you may be eligible.  Your plan must be a tax qualified plan to be eligible (most plans purchased after Jan. 1, 1997 will be tax qualified, but check with the insurance company if you are not sure).

Long term care insurance premiums are tax deductible to the extent that they, along with other unreimbursed medical expenses (including Medicare premiums), exceed 7.5 percent of the insured's adjusted gross income. This threshold will increase to 10 percent on January 1, 2013, although it will remain at 7.5 percent for taxpayers 65 and older through 2016.  If you are self employed, the rules are a bit different so check with your tax advisor.

Following are the deductibility limits for 2013 and 2012. Any premium amounts for the year above these limits are not considered to be a medical expense.

Attained age before the close of the taxable year

Maximum deduction for year 2013

Maximum deduction for year 2012

40 or less

$360

$350

More than 40 but not more than 50

$680

$660

More than 50 but not more than 60

$1,360

$1310

More than 60 but not more than 70

$3,640

$3500

More than 70

$4,550

$4370

 

 

 

 

 

 

 

 

 

 

While it is October and the end of the year is approaching, you still have time to apply for long term care insurance for 2012 and get the benefit of the tax deduction for premiums you pay in 2012.

 Security code
  • Medicare Coverage

    Selecting a Medicare health insurance plan can be easy. Request an iQuote from a representative today.

    REQUEST iQUOTE

    or Learn More

  • Life Insurance

    You can protect the ones you love with term life insurance. Request an iQuote from a representative today.

    REQUEST iQUOTE

    or Learn More

  • Long Term Care

    Preserve your independence & choices with long term care insurance. Request an iQuote from a representative today.

    REQUEST iQUOTE

    or Learn More