KIRKLAND, Wash. — Want to keep some of your tax money or get a bigger refund? Then remember, if you have long term care insurance, that deductions are allowed for the premiums you pay. If you don’t have long term care insurance but intend to get it, remember the tax break that will be due you for 2009. This reminder comes from LTC Financial Partners LLC (LTCFP), one of the nation’s most experienced long term care insurance agencies.
“Many people with LTC policies don’t realize they can deduct hundreds or even thousands of dollars,” says Cameron Truesdell, CEO of LTCFP. According to the Internal Revenue Service, the amounts deductible as medical expenses in 2008 can be as high as —
* $3,850 if you’re 70 or over
* $3,080 if you’re over 60 but not over 70
* $1,150 if you’re over 50 but not over 60
* $580 if you’re over 40 but not over 50
* $310 if you’re 40 or under
“Those who don’t have policies, but want them, can set themselves up now for nice deductions next year,” Truesdell says. The amounts 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
“We don’t offer tax advice,” says Truesdell, “but we team up with accountants and other tax experts to help their clients get all the deductions available to them for policies they have or might obtain. We’re the experts on everything to do with long term care insurance.” LTCFP has formed strategic alliances with banks, accountants, other financial advisors and tax preparers, and organizations such as the National Association of Estate Planning Attorneys.
Truesdell strongly urges individuals and companies to investigate all the tax advantages that may be available to them. Extending beyond those shown in the above tables, the potential benefits include these:
* When a policy is designed to pay on a per-diem basis, a limited portion of the benefits may be excluded from taxable income.
* When a policy is paid for out of a Health Savings Account (HSA), there can be tax advantages.
* For businesses, there are tax breaks that can be especially attractive. For example, opportunities exist for some business owners to deduct premiums without having to satisfy the 7.5 percent medical expense threshold amount.
How can you make sure you don’t miss out? “Ask your tax expert to check into every deduction that may apply in your case,” Truesdell advises. “We’re glad to help. We’ll meet with anyone’s accountant, tax attorney, or other advisor — now or closer to the tax deadline.” In Truesdell’s national organization, more than 550 experts are available by phone or Internet.
Requests for help, at no change, may be made at http://www.ltcfp.us/ltcfp/taxbreaks.htm .