Picture

   
    
Picture
Picture
Picture
Picture
(781) 843-5034
contact@herbstlawgroup.com
  Herbst Law Group, LLC
  • Home
  • Our Firm
    • Who We Are >
      • Peter C. Herbst Jr.
      • Briana N. Nashawaty
  • Services
    • Estate Planning
    • Estate and Trust Administration
    • Elder Law
    • Business Succession Planning
  • News
  • Contact
  • Review
  • Payment
  • updateguide

IRS Issues Long-Term Care Premium Deductibility Limits for 2019

12/5/2018

0 Comments

 
Picture
The Internal Revenue Service (IRS) is increasing the amount taxpayers can deduct from their 2019 income as a result of buying long-term care insurance.
Premiums for "qualified" long-term care insurance policies (see explanation below) are tax deductible to the extent that they, along with other unreimbursed medical expenses (including Medicare premiums), exceed 7.5 percent of the insured's adjusted gross income.  (The 7.5 percent threshold is for the 2017 and 2018 tax years.  It is scheduled to revert to 10 percent in 2019.)
These premiums -- what the policyholder pays the insurance company to keep the policy in force -- are deductible for the taxpayer, his or her spouse and other dependents. (If you are self-employed, the tax-deductibility rules are a little different: You can take the amount of the premium as a deduction as long as you made a net profit; your medical expenses do not have to exceed a certain percentage of your income.)
However, there is a limit on how large a premium can be deducted, depending on the age of the taxpayer at the end of the year. Following are the deductibility limits for 2019. Any premium amounts for the year above these limits are not considered to be a medical expense.


Attained age before the close of the taxable year

Maximum deduction for year

40 or less

$420

More than 40 but not more than 50

$790

More than 50 but not more than 60

$1,580

More than 60 but not more than 70

$4,220

More than 70

$5,270

Another change announced by the IRS involves benefits from per diem or indemnity policies, which pay a predetermined amount each day.  These benefits are not included in income except amounts that exceed the beneficiary's total qualified long-term care expenses or $370 per day, whichever is greater.
For these and other inflation adjustments from the IRS, click here.  

What Is a "Qualified" Policy?
​

To be "qualified," policies issued on or after January 1, 1997, must adhere to certain requirements, among them that the policy must offer the consumer the options of "inflation" and "nonforfeiture" protection, although the consumer can choose not to purchase these features. Policies purchased before January 1, 1997, will be grandfathered and treated as "qualified" as long as they have been approved by the insurance commissioner of the state in which they are sold.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    meet the attorneys

    Peter C. Herbst Jr
    Picture
    Areas of focus: estate planning, estate & trust administration and elder law. 
    Briana N. Nashawaty
    Picture
    Areas of focus: estate planning, estate & trust administration, and 
    elder law.

    Archives

    November 2021
    October 2021
    August 2021
    July 2021
    May 2021
    April 2021
    January 2021
    December 2020
    September 2020
    August 2020
    June 2020
    April 2020
    February 2020
    January 2020
    December 2019
    May 2019
    April 2019
    March 2019
    February 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    April 2017
    May 2015

    Categories

    All
    Elder Law
    Estate Administration
    Estate Planning
    Informal Probate
    MassHealth Planning
    Real Estate

    RSS Feed

in the news

Stay informed

Sign-up to receive emails from Herbst Law Group, LLC and stay informed about important news and events:

SIGN UP NOW »
For Email Marketing you can trust.

'like us' on facebook

FOLLOW US ON TWITTER

Tweets by @HerbstLawGroup
​HOMEOUR FIRMPARTNERSSERVICESNEWSCONTACT​DISCLAIMER

Herbst Law Group, LLC
1000 Washington Street, Braintree, MA 02184
T: (781) 843-5034    |   F: (781) 848-3051
contact@herbstlawgroup.com
NAELA
Website design by Birdhouse Marketing & Design