IRS Issues Long-Term Care Insurance Premium Deductibility Limits for 2006
Nov. 8, 2005- The Internal Revenue Service has announced the 2006 limitations on the deductibility of long-term care insurance premiums from taxes.
Premiums for “qualified” (see explanation below) long-term care policies are treated as an unreimbursed medical expense. These premiums what the policyholder pays the insurance company to keep the policy in force — are deductible to the extent that they, along with other unreimbursed medical expenses (including “Medigap” insurance premiums), exceed 7.5 percent of the insured’s adjusted gross income.
Long-term care insurance premiums are deductible for the taxpayer, his or her spouse and other dependents.
However, there is a limit on how large a premium can be deducted, depending on the age of the taxpayer at the end of the year. Following are the deductibility limits for 2006. Any premium amounts above these limits are not considered to be a medical expense.
Attained age before the close Maximum deduction of the taxable year 40 or less $280 More than 40 but...To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
