| The Federal Government is buying votes
by offering something called "DEDUCTIONS" on your long-term care insurance
premiums. Now most people have heard that rumor, but did you realize
that your state may grant an additional deduction or tax credit on your
long-term care insurance premiums. According to Gene Cutler, Manhasset, New
York-based agent for LTC
Financial Partners LLC (LTCFP)
"More and more states realize that it
makes sense for them to subsidize private long-term care insurance.
That helps them span the difference so they won't go broke providing public
assistance. Taxpayers are encouraged to take full advantage of these
incentives." |
| New York offers a beefed up 20 percent of the sum of premiums paid for a
qualified long-term care insurance policy in a given tax year, as long as
you meet one basic requirement. "You must pay your taxes in New York
State, period." Cutler then elaborates: "You don't even have to live
there. An out-of-state resident who works in New York and goes home to New
Jersey or Connecticut, etc. gets the 20 percent credit as well. All this is
yours in a state that doesn't give away ice in the winter." Individuals in states that do not offer a credit or deduction may still do well at tax time. "Eventually your state may join the tax-incentive bandwagon," says Cutler, "but in the meantime, you can take your federal deduction if you qualify, and it could be quite sizeable." For the 2009 tax year, an individual with a qualified policy may be able to deduct up to $3,980, depending on age. For a couple, the maximum amount doubles, to nearly $8,000. According to the Internal Revenue Service, for individuals the amounts of long term care insurance premiums that are deductible as medical expenses in 2009 can be as high as -- • $3,980 if you're 70 or over • $3,180 if you're over 60 but not over 70 • $1,190 if you're over 50 but not over 60 • $600 if you're over 40 but not over 50 • $320 if you're 40 or under. "The federal and state incentives are not a one-time thing," Cutler says. "You can take them year after year." LTCFP does not offer tax advice but teams up with accountants and other tax experts to help their clients get all the deductions or other benefits available to them. "We've formed strategic alliances with banks, accountants, other financial advisors and tax preparers, and organizations such as the National Association of Estate Planning Attorneys," says Cutler. To get all that's coming to you, just ask your local CPA or tax expert to check into every deduction that may apply in your case in your states. "And we'll lend you a hand. We have over 500 experienced agents covering all 50 states, and we're ready to consult with anyone's accountant, tax attorney, or other advisor." Requests for help, at no charge, may be made at www.ltcfp.us/ltcfp/taxbreaks.htm. |