DUNN INSURANCE SERVICES LLC

NAIC Partnership Certified - Long-Term Care Specialists Since 1993



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Tax Benefits* - Individuals

What are the individual tax benefits?

Tax Benefits for Individuals
We knew about the tax write off; we didn't realize that our daily benefit of $1,000 per day in our 80's was tax free.

Tax benefits* for individuals with long-term care

  • Tax-qualified long-term care insurance premiums are considered personal medical expenses for those who itemize their deductions. The amount considered a medical expense is limited to the eligible premium, per the Internal Revenue Code 213(d), that is based on the age of the insured individual. (The amounts are indexed annually for inflation.)

Attained Age Before Close of Taxable Year
2011 Deductible Limits

40 or less $340
More than 40, but not more than 50 $640
More than 50, but not more than 60 $1,270
More than 60, but not more than 70 $3,390
More than 70 $4,240
  • Deductible is subject to the 7.5% adjusted gross income rule.
  • All long-term care insurance benefits paid to the policy holder will be income tax free.

*Source:  John Hancock Corporate Law Department's interpretation of the Federal Guidelines; American Association for Long-Term Care Insurance

Please consult your tax consultant and financial advisor regarding tax issues.



Dunn Insurance Services LLC

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