Have you delayed securing a long-term care policy? Perhaps the new IRS deductibility guidelines might prompt you to consider a new policy.
Premiums for a tax-qualified long-term care policy are considered a medical expense. For individuals who itemize tax deductions, medical expenses are deducible to the extent they exceed the current amount required to meet an individual’s adjusted gross income (AGI). In addition, Maryland offers a one-time $500 tax credit for a tax-qualified long-term-care policy.
With the cost of nursing home care in Maryland approaching $10,000 per month, most financial planners recommend a comprehensive elder care strategy.
This includes a policy to transfer part of the risk from you to an insurance company. If you do not have a policy, you are 100% self-insured. Even a small policy would conserve some assets and part of your estate.
The American Association for Long-Term Care Insurance has more detailed information regarding long-term care tax deductions. You can obtain this information at www.aaltci.org/tax.
For more information and specific quotes for a long-term care policy, please contact Keith Mathis at 443-449-2327 or by email kmathis@medchiagency.com.