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.