NU Online News Service, June 15, 1:35 p.m. – CNA LTC, Nashville, Tenn., the long-term care business unit of the CNA insurance companies, today announced its support of pending legislation that would make long-term care insurance premiums an above-the-line deduction on federal taxes.
The legislation, titled the “Long-Term Care and Retirement Security Act of 2001,” introduced by Representatives Nancy Johnson, R-Conn., and Nancy Thurman, D-Fla., would phase in a 100% tax deduction for private tax-qualified LTC insurance premiums, says CNA LTC. The deduction would start at a 50% tax deduction for the first year and increase to 100% in the sixth year, says CNA LTC. The phase-in schedule is accelerated to four years for those over age 60.
Additionally, under this bill individuals with long-term care needs or their caregivers would receive a $1,000 tax credit to help cover expenses.
The bill is currently under consideration in both the House and the Senate, says CNA LTC.