Long-Term Care Insurance Sees 3% Increase In Tax Deduction Limits

The Internal Revenue Service (IRS) has announced increased deductibility levels for long-term care insurance policies purchased in 2010. “For the first time, the maximum deductible limit for an individual exceeds $4,000,” says Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance (AALTCI), the national trade organization.

“The federal government and an increasing number of states are sending a clear signal that individuals need to plan for long-term care and tax deductibility and tax credits certainly make long-term care insurance more attractive to millions,” Slome says. “It is a positive sign to see limits for long-term care insurance deductibility increase especially when pension contribution limits for 2010 were not increased.”