KIRKLAND, Wash., March 18 /PRNewswire/ -- As the April 15 tax deadline looms, filers should not overlook the deductions allowed for long term care insurance, according to LTC Financial Partners LLC, the nation's most experienced long term care insurance agency.
*(PHOTO 72dpi: Send2Press.com/mediaboom/07-0807-LTCTruesdell_72dpi.jpg)
*(Photo Caption: LTC Financial CEO Cameron Truesdell.)
"People with LTC policies can deduct substantial sums," says Cameron Truesdell, CEO of LTC Financial Partners (LTCFP), "and those who don't have policies, but want them, can set themselves up now for deductions next year."
According to the Internal Revenue Code, the 2008 deductible amounts can
be as high as --
-- $3,850 if you're 70 or over*
-- $3,080 if you're over 60 but not over 70*
-- $1,150 if you're over 50 but not over 60*
-- $580 if you're over 40 but not over 50*
-- $310 if you're 40 or under*
* Before end of taxable year, if medical expenses exceed 7.5% of adjusted
But the tax benefits may not end there. "When people start taking their benefits, there can be additional deductions in some cases," Truesdell says. "When a policy is designed to pay on a per-diem basis, a limited portion of the benefits may be excluded from taxable income." Also, when a policy is paid for out of a Health Savings Account (HSA), there can be tax advantages. "HSAs are funded with pre-tax dollars, and long term care premiums are eligible medical expenses, according to the IRS (Publication 502)."
For businesses, the tax breaks can be especially attractive, Truesdell says. "For example, when small business owners pay the premiums -- for employees or themselves -- it's generally deductible as a business expense." The self-employed, S-corporation owners, and C-corporation owners are NOT subject to the 7.5% rule that limits the medical-expense deductions of individual taxpayers.
|SOURCE LTC Financial Partners LLC|
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