IRS Announces Increased Tax Deductions For Long-Term Care Insurance

Free Guide Details 2010 Tax Deductible Rules & Limits

Tax deductible limits for the purchase of long-term care insurance have been increased. The tax deductible limits apply to individuals. Significant tax advantaged rules now also apply to business owners and self-employed individuals.

The Internal Revenue Service (IRS) increased deductibility levels for long-term care insurance policies purchased in 2010. "Many individuals and small business owners are not aware of the significant tax savings available," states long-term care insurance professional with Is LTC For Me located in Dallas, Pa.

Tax deductible limits for individuals increased three percent in 2010, Business owners enjoy added tax advantages and may be able to deduct 100 percent of the cost for themselves and even their spouses who don't work for the business.

The following are the 2010 deductible limits for eligible long-term care insurance (per individual).

• Age Before Close of Taxable Year 40 or less Deductible Limit $ 330
• Age Before Close of Taxable Year More than 40 but not more than 50 Deductible Limit $ 620
• Age Before Close of Taxable Year More than 50 but not more than 60 Deductible Limit $1,230
• Age Before Close of Taxable Year More than 60 but not more than 70 Deductible Limit $3,290
• Age Before Close of Taxable Year More than 70 Deductible Limit $4,110

Free Tax Guide Offer

A free guide explaining the 2010 tax deductible limits for individuals as well the tax-advantaged rules for self-employed and business owners is available from the American Association for Long-Term Care Insurance, the industry trade group. To request a copy call Bill Watchulonis at 570-674-0734 or send an E-mail to bill@isLTCforMe.com.