Long-Term Care Premiums: What Things Can I Deduct?

Posted by on April 7, 2012 | No Comments

When tax season comes, all anybody appears to speak about is deductions. Not surprisingly, one of the most typical concerns about long-term care insurance premiums is “Can I deduct them?”

Well, the truth is that you are able to, in some cases, so find out exactly where you sit in terms of deduction scenarios to find out what you are able to deduct from your long-term care insurance premiums.

To begin with, if you are an individual taxpayer that does not itemize, then you are unable to claim a deduction on your long-term care insurance premiums. Nevertheless, if you do itemize deductions then you can deduct the health insurance premium but it is limited to the lesser from the actual premium, or eligible long-term care premium.

If you are a self-employed tax payer, including partnerships, members of LLC, or sole proprietors, then you’re eligible for a self-employed health insurance deduction on your IRS Form but it is limited towards the lesser of actual premium paid however it is not topic towards the 7.five percent of Adjusted Gross Income threshold.

If your premiums are paid for by an employer, the employer will treat the long-term care insurance premiums as accident and well being plans. These premiums would then be deductible towards the employer and would not be including within the revenue of the employee.

It can get a bit complex to know what you can deduct and what you can’t deduct when tax season comes about. Consequently, it is essential which you get in touch with your tax adviser or accountant to find out exactly what you are able to and cannot do. You don’t want to attempt and deduct some thing you cannot and then face an audit, and at the exact same time you don’t want to neglect to deduct what you are able to, forcing you to pay much more or obtain much less on your revenue tax rebate.

If you do your own taxes, then consult your insurance company to locate out what you are able to deduct on the long-term care insurance premiums that you pay to them. The representatives ought to be more than helpful in answering your concerns and ensuring you do not end up audited, or not deducting what you can.

Summary Tax season is really a stressful time for citizens and accountants alike. It is a time of trying to determine what to deduct, what to exclude and how to get as a lot bang for their buck as possible. As a result, people will try and deduct everything that they are able to, which includes long-term care insurance premiums.

Many do not understand, nevertheless, what they can deduct when it comes to their long-term care insurance premiums, but if they take the time to study the tax information and determine exactly where they sit when it comes to the kind of taxpayer they are, they ought to be able to figure it out. In the worst case scenario, an individual should just ask for assist from an accountant or insurance representative who will be happy to answer any concerns.

Before you go out and buy a policy go to www.longtermcareinsurance-guide.com, ask questions and request a long term care insurance quote. We represent 20 of the top LTCi providers. This gives you tremendous options.

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