The IRS has announced a series of increases for tax deductions related to long term care insurance, moves which finally push the maximum individual deduction over $4,000 per year.
Policies purchased in 2010 will enable customers over the age of 70 to deduct $4,110 per year; those between 60 and 70 can write off $3,290; and even those between 40 and 50 can enjoy a $620 deduction.
Jesse Slome, executive director of the American Association for Long-Term Care Insurance, says the move is further evidence of broader support for the assurance of LTCI.
“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 LTCI more attractive to millions,” he says. “It is a positive sign to see limits for LTCI deductibility increase, especially when pension contribution limits for 2010 were not increased.”