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Wilmarth Financial Planning Group |
Long Term Care: IRS DeductionsThe Internal Revenue Service has released guidance (Rev. Proc. 2007-66), regarding cost of living adjustments/deductions for eligible long-term care premiums beginning for tax year 2008. To be eligible for long-term care premium tax deductions, an individual must have a tax qualified policy and itemize their expenses on a form 1040 Schedule A. The amount of eligible long-term care premiums that may be included as medical expenses on a tax return (form 1040 Schedule A) are based on an individual’s age and is adjusted annually for increases in the medical component of the Consumer Price Index The following is the maximum tax deduction for qualified for long-term care premiums for individuals choosing to itemize deductions for tax returns filed for taxable year in [2008] under Section 213(d) of the Internal Revenue Code. Eligible Long-Term Care Premiums. For taxable years beginning in 2008, the limitations regarding eligible long-term care premiums are as follows:Attained Age Before end of tax year Limitation on Premium 40 or less $ 310 More than 40 but not more than 50 $ 580 More than 50 but not more than 60 $1,150 More than 60 but not more than 70 $3,080 More than 70 $3,850 Periodic Payments Received under Qualified Long-Term Care Insurance Contracts For calendar year 2008, the stated dollar amount of the per diem limitation for periodic payments received under a qualified long-term care insurance contract is $270. Circular 230 Notice: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. Federal tax information contained in this communication (including any attachments) is not intended to (and cannot) be used by anyone to avoid IRS penalties. It is intended to support the sale of MetLife insurance products. Taxpayers should seek advice based on their particular circumstances from an independent tax advisor. For Additional Information please call: The MetLife Investors Long-Term Care Sales Desk at 888-776-3882 or your Regional Sales Vice President. L11075148[exp1108][All States] |
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