2009 Tax Deductible Limits For Long-Term Care Insurance Announced

The Internal Revenue Service (IRS) has announcedMore than 60 but not more than 70: $3,180
increased deductibility levels for long-term careMore than 70: $3,980
insurance policies purchased in 2009. To encourageThere are also tax changes for periodic payments
individuals to purchase long-term care insurance thereceived under Qualified Long-Term Care Insurance
federal government and many states offer taxcontracts or certain life insurance contracts.
deductions and tax incentives that increase yearly.For calendar year 2009, the stated dollar amount of
Tax advantaged long-term care insurance is one ofthe per diem limitation under S 7702B(d)(4), regarding
the few remaining significant tax-savings benefits forperiodic payments received under a qualified long-term
small business owners. "In certain situations, the cost ofcare insurance contract or periodic payments received
long-term care insurance can be fully tax deductible forunder a life insurance contract that are treated as paid
the business. Even spouses can be covered under aby reason of the death of a chronically ill individual is
tax-advantaged plan.$280.
There is still time to take advantage of tax deductionsAnnual Exclusion for Gifts - For calendar year 2009,
in 2008 and also benefit from the increased deductiblethe first $13,000 of gifts to any person (other than gifts
limits next year. The deductible limits under Sectionof future interest in property) are not included in the
213(d)(10) for eligible long-term care premiumstotal amount of taxable gifts under S 2503 made
includable in the term 'medical care' are as follows:during that year. Source: IRS Revenue Procedure
Eligible Long-Term Care Premiums - For taxable years2008-66
beginning in 2009, the limitation under S 213(d)(10),To find a comprehensive online directory of over 3,000
regarding eligible long-term care premiums includible ininsurance professionals who can assist with your
the term "medical care" are as follows:long-term care insurance needs, visit the Consumer
40 or less: $320Information Center of the American Association for
More than 40 but not more than 50: $600Long-Term Care Insurance.
More than 50 but not more than 60: $1,190