The IRS has announced the 2012 deductible limits under Section 213(d)(10) for eligible long-term care premiums. Remember, each year the deduction can go up, while most premiums remain level Here they are:
The 2012 deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:
Attained Age Before Close of Taxable Year
40 or less – $ 350
More than 40 but not more than 50 – $ 660
More than 50 but not more than 60 – $1,310
More than 60 but not more than 70 – $3,500
More than 70 – $4,370
The per-diem limitation under 7702B(d)(4) is $310.
For more information on the tax treatment of LTC, visit the AALTCI.org tax section at http://www.aaltci.org/long-term-care-insurance/learning-center/tax-for-business.php
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