Long Term Care Insurance State Tax Deduction Guide Published

Long term care insurance premiums may be fully tax deductible for individuals and a growing number of states now offer deductions and even tax credits to those purchasing this important coverage.

According to the American Association for Long Term Care Insurance, the national trade organization, tax deductibility gives individuals and business owners one very important reason to consider ways to address future long term care needs.

“Americans are living well into their 80s, 90s and even longer when the likelihood of needing extremely costly long term care services is almost a guarantee,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group charged with creating awareness for long term care related issues.  “The  federal and state governments recognizes this and offers the tax incentives to encourage more people to plan.”

Individuals may be able to deduct long term care insurance premiums paid from their 2011 federal income taxes.  The federal levels are based on your age, Slome notes, ranging from $340 to $4,240 per-person and increase for new policies purchased in 2012.    Individuals face certain limitations that are not imposed on self-employed or corporations.  “These entities may able to make the full cost tax deductible,” Slome adds.

In addition to federal tax deductibility limits, a growing number of states now offer either tax deductions or tax credits to encourage state residents to purchase long-term care insurance.

The American Association for Long-Term Care Insurance has just published a state-by-state listing of available tax deductions on the organization’s website at www.aaltci.org/tax.

To learn more about long-term care planning and get long-term care insurance costs from a designated expert visit the American Association for Long Term Care Insurance Information Center.

Long-Term Care Insurance Tax Planning Idea For Business Owners

Long-term care insurance is one of the greatly overlooked tax deductions with special advantaged best suited for small business owners. The American Association for Long-Term Care Insurance maintains helpful information about deductibility levels and rules on it's website. Click here to read more.

But here is a tip summarized from the just published edition of Long-Term Care Insurance Sales Strategies magazine. The idea was shared by David Hillelsohn of the Haslett Management Group.

The firm worked with an employer who desired offering an employer-paid long-term care insurance plan to employees, but only wanted to selectively provide the coverage to those nearing retirement age.

To accomplish this,, the firm created their own eligible classification for the insurance benefit by creating a point system - giving a point for years of service and a point for the employees age. Any employee with 50 or more points was eligible for the employer paid plan.

The use of Executive Carve Out plans for long-term care insurance remains one of the best ways small businesses can use pre-tax dollars to pay for this important benefit. For more information, contact your long-term care insurance professional or click here for no-obligation information.