The Internal Revenue Service has announced increased deductibility levels for long-term care insurance polices purchased in 2007.
In some cases, 100% of the policy costs can be deducted.
"Increased tax deductible limits are another indication of the government's commitment to encourage Americans to purchase protection against the possible risk of needing long-term care," said Jesse Slome, executive director of the American Association for Long-Term Care Insurance. "There is still time to take advantage of tax deductions in 2006 and also benefit from the increased deductible limits next year."
Many states also offer tax incentives for individuals purchasing tax-qualified long-term care coverage, he said.
In an example of the changes in 2007, for individuals more than 60 years old but not older than 70, deductible limits have increased from $2,830 to $2,950, according to the IRS.
For individuals more than 70 years old, limits have gone from $3,530 to $3,680.