IRS increases tax deductions for LTC insurance for 2015
The Internal Revenue Service has increased tax deductions for long-term care (LTC) insurance policies purchased in 2015, according to the American Association for Long Term Care Insurance.
The increase amounts to about two percent compared with the previous year, according to Jesse Slome, executive director of the national trade group.
“Tax-advantaged LTC insurance remains one of the few remaining significant tax-savings benefits especially meaningful for small-business owners," Slome says. "While deductions may not apply for individuals who are still working, they often can be taken during retirement when income stops and medical expenses often occur.”
The table here details the 2014 and 2015 deductible limits under Section 213(d)(10) for eligible LTC premiums includable in the term “medical care.”
The per-diem limitation under Section 7702B(d)(4) for periodic payments received under a qualified LTC insurance contract for 2015 remains at the 2014 amount of $330, Slome says.