NU Online News Service, June 19, 4:14 p.m. — Washington
The House Ways and Means Committee has approved legislation providing a limited above-the-line tax deduction for long-term care insurance.
In a 29-6 vote, the committee approved H.R. 4946, which would provide a graduated deduction with a maximum of 50% for LTC premiums.
An above-the-line deduction is one that is available to all taxpayers, whether or not they itemize.
A deduction would only be available to individuals with less than $40,000 in adjusted gross income and to married couples filing jointly with less than $80,000 in adjusted gross income.
There would be no deduction for individuals whose employers pay 50% or more of the total premiums.
In addition, H.R. 4946 contains no language for including LTC insurance in cafeteria plans or flexible spending accounts.