It’s that time of year. Unless you routinely file for an extension, you are thinking about taxes, meeting with your CPA, hoping you’ve thought of every potential deduction and that your tax liability doesn’t change your Mediterranean cruise into a staycation.
One is if you have a tax-qualified long-term care insurance policy you want to be sure to include the IRS eligible premium deduction on your federal taxes. You must itemize to do this.
But many states allow a credit or deduction for long-term care insurance premiums. Be sure that you know what your state allows. It could be attractive to you.
If your premiums are paid by a corporate entity, it could be even more attractive to you and the corporate entity.
We think that the entire premium paid for tax-qualified long-term care insurance should be tax deductible. Wouldn’t that be an incentive for consumers to buy this insurance? We think so.
More importantly, a long-term care insurance policy is designed to help fund care but also protect your assets and income.
Wouldn’t you rather pay a long-term care insurance premium and taxes than file for bankruptcy? If in doubt, read this article from AARP. It’s compelling.
Thanks to Amy Goyer for the courage to share her experience.