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2021 Tax Deductible Limits For Qualified Long-Term Care Insurance Announced

The Internal Revenue Service announced the increased limits for tax deductibility of long-term care insurance premiums.  According to IRS Revenue Procedure 2019-44, a couple age 70 or older who both have the right kind of long-term care insurance policy can deduct as much as $11,280 in 2021.  Compared to the 2020 limit of $10,860. 

 

 

The following are the new 2021 deductible limits (2020 in brackets): 2021 Tax Deductible Limits Long-Term Care Insurance Premiums paid for traditional long-term care insurance are included as ‘medical care’.   The following are the just announced 2021 limits (per-individual):

Attained Age Before Close of Taxable Year                       2021 Limit               (2020 Limit)
40 or less                                                                                   $450                         $430
More than 40 but not more than 50                                           $850                         $810
More than 50 but not more than 60                                          $1,690                       $1,630
More than 60 but not more than 70                                          $4,520                       $4350
More than 70                                                                            $5,640                       $5,430

Learn more about how you might benefit from a tax qualifed long-term care insurance policy.

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