It can be a complex and costly process to obtain security during one's retirement years, but people may want to speak with their tax preparer about one specific part of the tax code that may prove helpful in this area.
LTC Financial Partners, an insurance company, recently reminded consumers that their long-term care insurance premiums may be tax deductible this filing season. With that in mind, the company is suggesting that people who do not have such coverage should consider getting a policy this year to tax advantage of the tax benefits next year.
"These deductions are not a one-time thing. They recur. You can take them each and every year that you pay premiums; and the deductible limits have been increasing annually," said CEO Cameron Truesdell.
Truesdell went on to note that people over the age of 70 may be able to deduct as much as $3,980 of their qualified annual premiums, with the tax benefit falling to lower levels the younger a policyholder is. For example, somebody aged 40 or under can typically only write off $320 of their annual long-term care insurance costs.
The company also noted that couples can claim a maximum deduction of $8,000 at filing time, and that state tax benefits may also apply in some cases.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.