2012 Long Term Care Tax Deduction Limits
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However, the number of insured individuals is still obviously lower than those who are yet to acquire their own LTC insurance plan. This makes the government worried regarding the future of uninsured residents who might turn to Medicaid’s help should they find buying an LTC policy impossible due to monetary restraints.
The Medicaid spends billions of dollars ever year just to compensate and cover the LTC needs of its beneficiaries. As a result, some other important necessities that the Medicaid should shoulder are given only a small portion of its funds. And if this trend continues, the Medicaid might just allocate majority of its funds to LTC expenditures alone and its funds may not even be enough to pay for the other aspects that it needs to be satisfied.
In the undying effort to increase the number of the LTC policyholders, and at the same time lessen the Medicaid expenses related to LTC matters, the government continuously improve and create other possibilities of how they can improve the benefits that the LTC insurance policy owners currently have.
One of these developments include the never-ending enhancement of long term care tax deduction levels that increases the efficiency and value of worth of their insurance policies.
The following are the newest and updated LTC tax limits for Self-Employed individuals. He can deduct up to 100 percent of his monthly premiums depending on the age-based list below:
- Age 40 and below - $350
- Age 41 to 50 - $660
- Age 51 to 60 - $ 1,310
- Age 61 to 70 - $ 3,500
- Age 71 and above - $ 4,370
For owners of Partnerships, Subchapter S Corporations, and LLCs, the members, partners, and shareholders may deduct their tax limits based on the age-based eligible amount of their tax returns. They also do not need to meet the 7.5 AGI thresholds to have their tax deductions.
Meanwhile, owners of Subchapter C Corporations can deduct 100 percent tax deduction as a business expense for the total amount of the LTC monthly premiums that they were able to pay.
But those who fall under this CatID must remember that their tax deductions are not age-based and that the tax limits table may not be applicable to them. They have to clarify with their insurance provider if there is any confusion or misunderstanding about this.
The long term care tax deduction limits change yearly so it is strongly advised to inquire about the changes and to be updated about it regularly. Visit some of the private companies’ websites and check their online LTC tools that provide information and other details on how to make use of all your policy benefits.
Owning an LTC insurance plan has been one of the most important investments that an individual can give himself ever since the public has realized the numerous benefits and perks that they can get from it. So in order to convince more people to acquire an LTC plan, the government has set long term care tax deduction limits to help them benefit more from their own LTC policies.
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