I Want You to Stop Paying Taxes
Tax Qualified Long Term Care Insurance




          www.skloff.com
Criteria of Tax Qualified Long Term Care Insurance

Unable to perform two or more of the six Activities of Daily
Living (A...
Employer Tax Benefits

C corporations can deduct the full amount of tax qualified
long term care insurance premiums paid f...
Employer Tax Benefits
Sole proprietors, partnerships, limited liability corporations
(LLCs) and S corporations can follow ...
Employee and Individual Tax Benefits

Employees and individuals purchasing their own a tax
qualified long term care policy...
Employee and Individual Tax Benefits

Employees and individuals who pay all or a portion of the tax
qualified long term ca...
Employee and Individual Tax Benefits

Employees and individuals purchasing their own policy can
add the tax qualified prem...
Employee and Individual Tax Benefits


Age Before the Close       Premium DeductionPremium Deduction
Of the Taxable Year  ...
Conclusions
C corporations can deduct the full the amount of tax qualified long term
care insurance premiums paid for empl...
Aaron Skloff, AIF, CFA, MBA
   Chief Executive Officer
   Skloff Financial Group

       908.464.3060



     www.skloff.c...
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Stop Paying Taxes Tax Qualified Long Term Care Insurance - Aaron Skloff, AIF, CFA, MBA - CEO Skloff Financial Group

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Stop Paying Taxes - Tax Qualified Long Term Care Insurance


Skloff Financial Group
http://www.skloff.com/services-ltci.htm

Published in: Economy & Finance, Business

Stop Paying Taxes Tax Qualified Long Term Care Insurance - Aaron Skloff, AIF, CFA, MBA - CEO Skloff Financial Group

  1. 1. I Want You to Stop Paying Taxes Tax Qualified Long Term Care Insurance www.skloff.com
  2. 2. Criteria of Tax Qualified Long Term Care Insurance Unable to perform two or more of the six Activities of Daily Living (ADLs): Bathing Continence Dressing Eating Toileting Transferring OR Need substantial assistance due to a severe cognitive impairment AND Need care for at least 90 days AND Have a Licensed Health Care Professional provide a Plan of Care www.skloff.com
  3. 3. Employer Tax Benefits C corporations can deduct the full amount of tax qualified long term care insurance premiums paid for employees, their spouses and dependents as a business expense. Employers paying for employees, their spouses and dependents domiciled in certain states may also be eligible for either tax credits or deductions for premiums they pay. For example, New York state provides a 20% tax credit. www.skloff.com
  4. 4. Employer Tax Benefits Sole proprietors, partnerships, limited liability corporations (LLCs) and S corporations can follow the same guidelines with deductions limited to the full the eligible amount: Age Before the Close Premium DeductionPremium Deduction Of the Taxable Year Limit 2009 Limit 2010 40 or less $320 $330 Over 40 but not over 50 $600 $620 Over 50 but not over 60 $1,190 $1,230 Over 60 but not over 70 $3,180 $3,290 Over 70 $3,980 $4,110 www.skloff.com
  5. 5. Employee and Individual Tax Benefits Employees and individuals purchasing their own a tax qualified long term care policy receive benefits federal income tax free, up to $280 per day (including indemnity benefits). Benefits above $280 are still federal income tax free up to the actual long-term-care costs. www.skloff.com
  6. 6. Employee and Individual Tax Benefits Employees and individuals who pay all or a portion of the tax qualified long term care insurance premiums for themselves, spouses and dependents may be able to deduct all or a portion of the premium on their federal income tax return. Employees and individuals purchasing their own policy living in certain states may also be eligible for either tax credits or deductions for premiums they pay. For example, New York state provides a 20% tax credit. www.skloff.com
  7. 7. Employee and Individual Tax Benefits Employees and individuals purchasing their own policy can add the tax qualified premium (limited to the chart below) to other medical expenses (health and dental insurance premiums, insurance co-payments, out-of-pocket prescription costs, and other unreimbursed medical expenses). Amounts in excess of 7.5% of adjusted gross income (AGI) can be itemized as a medical expense deduction on Schedule A of Form 1040 of federal income tax return, limited to… www.skloff.com
  8. 8. Employee and Individual Tax Benefits Age Before the Close Premium DeductionPremium Deduction Of the Taxable Year Limit 2009 Limit 2010 40 or less $320 $330 Over 40 but not over 50 $600 $620 Over 50 but not over 60 $1,190 $1,230 Over 60 but not over 70 $3,180 $3,290 Over 70 $3,980 $4,110 www.skloff.com
  9. 9. Conclusions C corporations can deduct the full the amount of tax qualified long term care insurance premiums paid for employees, their spouses and dependents as a business expense Sole proprietors, partnerships, limited liability corporations (LLCs) and S corporations can follow the same guidelines with deductions limited to the full the eligible amount Employees and individuals purchasing their own policy can itemize deductions limited to the full the eligible amount www.skloff.com
  10. 10. Aaron Skloff, AIF, CFA, MBA Chief Executive Officer Skloff Financial Group 908.464.3060 www.skloff.com

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