Monday, 02 November 2020 12:43
The changes in the tax code that affect Long Term Care insurance for the 2021 tax year have been published.
Eligible Long-Term Care Premiums
Taxpayers who benefit from itemizing their medical expenses can include at least some of their private long-term care insurance premiums in their medical expenses total.
The amounts that can be included in the medical expenses total vary by age.
Here’s how the 2021 “includible” premium levels compare with the 2020 levels:
- 40 or under: will increase to $450, from $430.
- More than 40 and up to 50: will increase to $850, from $810.
- More than 50 and up to 60: will increase to $1,690, from $1,630.
- More than 60 and up to 70: will increase to $4,520, from $4,350.
- 70 and older: will increase to $5,640, from $5,430.
Per Diem Benefit Limits
The Qualified Long-Term Care Insurance contract or Life Insurance contract per diem limitation will increase to $400 per day, from $380 per day.
That means up to $146,000 per year in Long Term Care benefits will be tax free to the policy owner.
Do you want to know more? Call today (800) 680-5596, or complete the form below.