Many people might not realize that one of the many advantages that owning an LTC insurance policy could give them is the long term care tax deductions that it provides every year. By having tax-qualified policies, the insurance owners can maximize and make full use of their benefits.
The government has been serious with its efforts of providing the public with the best and most suitable LTC insurance policy benefits that they could possibly give them simply because they want the public to be more responsible and in charge of their LTC needs.
Since the Medicaid spends billions and billions of dollars every year just to cover all the LTC-related expenses of its beneficiaries, other services that it also shoulders are given smaller portion of the funds and therefore might not give the proper services and assistance that it is supposed to provide the public with.
So as a way of encouraging more Americans to consider owning an LTC insurance policy, the government is working on other programs that are cheaper and more affordable so that the number of insured individuals would go up, therefore lessening the population of those who would rely or depend on Medicaid assistance in the future.
It is just a matter of obtaining right details and information and proper understanding on the part of the residents. They have to make sure that they know and understand how LTC insurance plans work in order to appreciate and know its value.
For example, the long term care tax deductions might not be given much attention by the public because they focus more on the amount of LTC plans that they might possibly get. and since the premiums are expensive, they think that getting one is not worth it and would only cost them so much.
But in reality, with all the advantages that they can get from such insurance plans, the price is really worth it and if they are lucky enough, they might get even more benefits in the future.
Tax deduction limits are updated and revised every year in order to cope up with the rising medical costs and to make the LTC insurance policies even more valuable. For 2012, insurance experts are happy with the new tax limits provided. For policies that fall under the individual purchase category, the following are the updated tax deductions:
• Aged 40 or less - $350
• More than 40 but not more than 50 - $660
• More than 50 but not more than 60 - $1,310
• More than 60 but not more than 70 - $3,500
• More than 70 - $4,370
For self-employed individuals, it is not mandatory or necessary to meet the 7.5% adjusted gross income to have 100% deduction on the premiums that he personally paid himself. The deduction will also be based on the limits provided for individual purchase.
Other long term care tax deductions for corporations and partnerships were also released by the Internal Revenue Service this year so to be sure to be updated about these developments by browsing some insurance websites or by simply asking your insurance provider for details.
Keywords: what is long term care insurance, long term care planning
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