Getting a bigger tax deduction for long term care insurance in 2016

The IRS is increasing the amount that can be deducted from tax returns in 2016 for Long Term Care insurance premiums.

Medical expenses for seniors keep rising and the cost of a long-term-care facility can reach $10,000 per month. At that rate a lifetime of savings can be depleted rapidly. As a result, many seniors have bought long term care policies.

For people between 50 and 60 years of age the deductible limit is $1,460.

For those older than 60 but under 70 the limit is $3,900.

For younger individuals the limits are lower:
• Under 40 years old it’s $390.
• From 40 to 50 it’s $730.

Keep in mind that the deductibles are classified as unreimbursed medical expenses and can only be deducted if they exceed 10% of your adjusted gross income. Premiums above the new limits are not considered a medical expense.

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