Two new guides providing information on the 2011 tax deductibility limits and the regulations governing long-term care insurance (LTCI) have been published and are now available from the American Association for Long-Term Care Insurance (AALTCI), according to Executive Director Jesse Slome.
“The special rules that can make long-term care insurance fully tax deductible for owners of small and mid-sized businesses is still a well-kept secret,” Slome said in a statement, pointing out that in 2011, individuals may be able to deduct as much as $4,240 of the cost for LTCI premiums on their tax returns. Exactly how much they can claim depends on their attained age before the close of the tax year.
The guides provide that information, also explaining the IRS rules and limits on deductibility for LTCI policies, whether the insured is a self-employed individual or a business owner.
One of the guides is focused specifically on the self-employed and on business owners. The other is designed for accountants and CPAs, and provides detailed explanations of how the tax rules handle premiums for individuals, the self-employed, limited liability corporations and C corporations. “Many tax professionals welcome a single, current source of information,” Slome stated.
The eight-page guide also explains the rules pertaining to health savings accounts, flexible spending accounts and cafeteria plans. Slome added that the booklet also features key information accountants often ask: “For example, the age when long-term care insurance claims begin (31.5% between ages 70 and 80), and the percentage of benefits paid for home care (31%).”
More information on the guides is available at the AALTCI website.