If you have clients who have long-term care insurance, "tax time is a good time to look for help from Uncle Sam," says Denise Gott, CEO of ACSIA Partners, one of the nation's largest long-term care insurance agencies. "And the help you get could be more than negligible."
Possible deductions range from hundreds to thousands of dollars per year, Gott said. "Millions may qualify, but will lose out if they fail to apply."
For the taxable year beginning in 2016, the limitations under Section 213(d)(10) of the IRS tax code, regarding eligible long-term care premiums includible in the term "medical care," are as follows:
Attained Age Before Close of 2016 Taxable Year/Limitation on Premiums:
• 40 or less: $390
• More than 40 but not more than 50: $730
• More than 50 but not more than 60: $1,460
• More than 60 but not more than 70: $3,900
• More than 70: $4,870
"If your clients are covered now, they should be sure to claim what's coming to them, Gott says.
For 2017 the limitations are about 5% higher than in 2016.
Attained Age Before Close of 2017 Taxable Year/Limitation on Premiums:
• 40 or less: $410
• More than 40 but not more than 50: $770
• More than 50 but not more than 60 $1,530
• More than 60 but not more than 70: $4,090
• More than 70: $5,110
"The limits have been increasing every year," says Gott. "What's more, they apply to every covered individual in a household. For example, a qualifying husband and wife filing jointly could deduct up to $7,800 for 2016, and up to $10,220 for 2017; and so on for as long as the legislation remains in force."
The original idea was to encourage Americans to protect themselves, according to Gott, "And we believe the Trump administration will support this philosophy going forward."
ACSIA Partners has hundreds of long-term care specialists in all parts of the country. "During tax season they're glad to talk with consumers and financial advisors about policy costs and tax adjustments,” Gott says. “They do not give tax advice, but can help explain the tax incentives. For tax advice, people need to consult their tax professional."
About ACSIA Partners LLC: Kirkland, Wash.-based ACSIA Partners is one of America's largest and most experienced long-term care insurance agencies serving all states. The company is also a co-founder and sponsor of the "3in4 Need More" campaign, which encourages Americans to form a long-term care plan.
- Political reaction: Republicans propose The American Health Care Act
- State Farm reports $1.2 billion pre-tax operating loss in 2016
- DOL aims for initial 60-day delay in fiduciary rule effective date
- Report aims to put a stop to ‘Use It and Lose It’ homeowner policies
- Most LTCI claims begin and end at home; insurers pay out $8.65 billion in 2016 claims, new data confirms
- 2nd annual ‘Insurance Careers Month’ trumpets fact 93% are proud to work in the industry; rallies recruiting efforts
- MetLife annuity and life products officially rebranded under Brighthouse Financial name
- 2017 health insurance trends: HSAs, wellness incentives and other tactics employers looking at to reduce costs