Taxpayers who can use the federal long-term care insurance (LTCI) premium deduction in 2014 may still get substantial benefits from the deduction.
Analysts at LTC Tree, an LTCI agency network, looked at how the latest LTCI premium deduction limits might affect policyholders who own a policy that provides a total of up to $219,000 in lifetime benefits with a 3 percent automatic inflation increase.
LTCI premiums have risen dramatically in recent years, and the Internal Revenue Service (IRS) has increased LTCI deduction limits just a little.
But couples in their 50s who are eligible for the LTCI deduction should still be able to deduct about 75 percent of typical LTCI expenses in 2014, and couples in their 60s should be able to deduct 100 percent of their expenses, the LTC Tree analysts said.
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Federal law makes an LTCI deduction available to consumers who can itemize medical expenses.