• Home
  • E-Booklets
  • Pay Less Tax
  • Privacy Policy
  • Cheatsheets
  • Contact Us
  • About us

Retirement Income

New Ways to Get More Retirement Income

  • Retirement Advisors
  • Retirement Insurance
  • Retirement Investing
  • Retirement Living
  • Retirement Planning

There Can Be an Added Incentive for LTCI Policy Owners

Posted on March 13, 2013 by bobrichards

The federal government offers an incentive for you to buy long-term care insurance. The premiums, as well as your out-of-pocket long-term care expenses; can be combined with other qualified outlays to reach the 10% medical deduction floor (the 10% applies as of 1/1/13 except for people age 65 and older and the deduction threshold will remain for that group at 7.5% through 2016, a nice senior tax break). Once you pass this amount, you can take a tax deduction as long as you itemized your return. The maximum insurance premium that you can deduct is determined by your age at the end of the tax year. For 2013, it is:

Age 40 or under: $360
Age 41-50: $680
Age 51-60: $1,360
Age 61-70: $3,640
Age 71+: $4,550

For example, if you are 65 years old at the end of 2013, you could include up to $3,640 of long-term care insurance premiums towards meeting the 7½% medical deduction base.

Many states have also recognized the importance of planning for long-term care expenses and give tax rewards to policy purchasers. The incentives range from partial deductions to actual credits for long-term care premiums towards state income taxes. The criteria to receive the deductions or credits vary as widely as the tax benefits and may include your age, the type of policy purchased, and your income. Since laws can change, you should review your state’s most current regulations to verify if you qualify for the tax break.

If you would like to see how federal and state tax incentives may possibly make a long-term care insurance policy more affordable, check off and return the enclosed coupon. We will review your most recent tax return and design a policy to meet your budget.

Everything You Don’t Know About How to Use Life Insurance to Make Money

  • Five ways that wealthy people use life insurance to retain and create wealth
  • How to convert an existing life insurance policy into more money than the insurance company valuation
  • Why you never want to be the owner of a policy that insures you
  • A huge and common mistake when selecting a life insurance beneficiary
  • They don’t talk about these “insider” strategies on CNBC or in Money magazine. Get the free guide to open up a new horizon of financial awareness.

    You might also like:

    • How to Pay Lower Taxes on IRA Distributions
      How to Pay Lower Taxes on IRA Distributions
    • When Will the Stock Market Recover
      When Will the Stock Market Recover
    • Bear Market - When Will It End?
      Bear Market - When Will It End?
    • Retired and Stocks Losing Value
      Retired and Stocks Losing Value
    • Recession Can Be Good for Retirees - The Silver Lining of Recession
      Recession Can Be Good for Retirees - The Silver Lining of…

    Filed Under: Retirement Insurance

    About bobrichards

    Bob Richards
    Editor | Involved in Various Marketing Positions within the Financial Services Industry

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    Second place winner best retirement blog

    SH award winner SMALL (1)

    Not Enough Savings to Retire?
    Learn Six Ways to Earn Retirement Income (from home)

    You do not need special talents, skills, computer knowledge, etc. We show you multiple ways others are working a few hours a week to generate a comfortable retirement income.

    Download Free Copy

    Latest Posts

    Recession Can Be Good for Retirees - The Silver Lining of Recession

    Recession Can Be Good for Retirees - The Silver Lining of Recession

    Bear Market - When Will It End?

    Bear Market - When Will It End?

    When Will the Stock Market Recover

    When Will the Stock Market Recover

    How to Pay Lower Taxes on IRA Distributions

    How to Pay Lower Taxes on IRA Distributions

    Retired and Stocks Losing Value

    Retired and Stocks Losing Value

    Categories

    • 401K IRA Roth Withdrawals, Distributions, and Rollovers
    • Annuities for Income
    • Estate Planning
    • Retirement Advisors
    • Retirement Insurance
    • Retirement Investing
    • Retirement Living
    • Retirement Planning
    • Social Security
    • Supplemental Retirement Income
    • Tax Savings
    • Alternative Investments
    • E-Booklets
    • Pay Less Tax
    • Privacy Policy
    • Cheatsheets
    • Contact Us
    • Subscribe
    • Sitemap

    Recent Posts

    • Recession Can Be Good for Retirees - The Silver Lining of Recession
    • Bear Market - When Will It End?
    • When Will the Stock Market Recover
    • How to Pay Lower Taxes on IRA Distributions
    • Retired and Stocks Losing Value

    The Retirement Income Blog

    25A Crescent Drive #1508
    Pleasant Hill CA 94523
    T: 844-887-4131
    E: [email protected]

    © 2018 Retirement Income