IRS Long Term Care Deduction
Long Term Care Tax Deductions
One of the more frequently asked questions about long term care insurance is if you can’t afford the long term premiums are there any tax benefits to owning a long-term care policy that might help subsidize the premiums.
Here are some answers to those questions given by tax experts:
1. Long-term care premiums are deductible as a medical expense (subject to the 7.5 percent-of-AGI floor), although there are limits to the deduction based on the taxpayer’s age. For example, a taxpayer between ages 61 and 70 may deduct as much as $3,080 in 2008 ($3,180 in 2009). A couple filing a joint return can deduct as much as $6,160 in 2008, if each spouse pays premiums on qualified long-term care policies. Payments in excess of any LTC benefits may be deducted as medical expenses.
Categories: Income Tax, Insurance, Money & Finance Tags: hsa, irs and long term care deduction, long term care, long term care insurance
Understand Credit Card Grace Period Due Dates
Credit Card Accountability Responsibility and Disclosure Act of 2009
Getting control over your credit cards is one way to help begin frugal simple living. Credit cards are convenient and sometimes we have no choice but to use them. In some cases the only payment a merchant will accept is a credit card. Other times when we don’t have the cash available and we have to spend the credit card is the only way. So credit cards are part of life and we have to accept that.
Categories: Credit Cards, Credit Cards, Debt Management, Money & Finance Tags: credit cards, debt management, frugal living, grace period
Frugal Living and Loving It
Frugal Living and Having Fun
What does “Frugal Living” mean to you? Probably it raises visions of generic brand food products, rinsing out plastic bags to reuse again and generally making do with less.
Most of us feel frugal living is just a rationalization for a reduced income. If we live in a frugal way it is because we just don’t make enough money to live in an enjoyable way. When you put it that way it certainly does not sound appealing.
Annuities with Long Term Care Riders
Long Term Care Insurance Pros and Cons
One reason so many people hesitate to purchase long term care policies is the expense. It is a huge expense at a time when we have so many other things to pay for like our kids college and our retirement. The government has enacted legislation to help with this problem.
The Pension Protection Act of 2006 says that starting Jan. 1, 2010, you ll no longer have to pay federal income tax on an annuity s proceeds if you use those proceeds to pay for long-term-care coverage.
Categories: Insurance, Money & Finance Tags: long term care insurance
Are Long Term Care Premiums HSA Contribution
HSA Funds for Long Term Care Insurance Premium
Long term care premiums can take a huge bite out of your budget but there is a way to cut the cost a bit and it is all tax free. You can use an HSA account to pay your premiums for long term care. If you want to learn how to evaluate long term care policies in terms of rate increases see our post Long Term Care Insurance Rate Stabilization A health savings account (HSA) is a tax-favored savings account created for the purpose of paying medical expenses. Contributions to the HSA are 100% deductible (up to the legal limit) — just like an IRA. If you use the money to pay for qualified medical expenses you do not have to pay taxes.
