Take Advantage of Long-Term-Care Insurance Premiums..

A qualified long-term-care policy is considered health insurance under the federal income tax rules, so when you personally buy a qualified policy, the premiums you pay are treated as medical expenses for itemized-deduction purposes on Schedule A. However, there are limits, which can be discussed once you are working with the Buyer’s Advocate nearest you.

Say you and your spouse are both in the 51 to 60 category. You pay an annual premium of $3,600 for a qualifying long-term-care insurance policy that covers you both. For 2006, you can include $2,120 (two times $1,060, since the policy covers both spouses) in the medical-expense pot for purposes of clearing the 7.5% of AGI threshold.

Now say you’re 63 years old and pay an annual premium of $5,000 for a qualifying long-term-care insurance policy that covers only you. For 2006, you can include $2,830 in the medical expense pot for purposes of clearing the 7.5% threshold.

Are you ready now to request your free comparison rate quote?

Technorati Tags: health, income tax, deduction, long-term-care insurance