Long-Term Care Awareness Month conversations should always include a mention of the tax advantages of Long-Term Care insurance [LTCi]. For those looking for a last-minute tax deduction, LTCi presents a solution.
LTCi is considered Health Insurance for tax purposes, which has favorable implications for owners of C-Corporations and S-Corporations alike.
- C-Corporations who fund an LTCi benefit for owners/employees and their spouses or dependents, can fully deduct premiums paid as a business expense
- S-Corporations who purchase LTCi for the owner and their spouse or dependents can deduct premiums up to the federally set Eligible Premium limits
What’s more – regardless of organizational structure, benefits received from an LTCi policy are tax free!
Non-business owners can reap the tax benefits of LTCi policies too. Tax-qualified LTCi premiums can be reimbursed through a Health Savings Account [HSA], tax-free, up to the age based Eligible Premium limits.
See below for the age-based EligiTable Premium limits.
Eligible Premium Limits for 2019
| At age: | You can deduct: |
| 40 & Younger | $420 |
| 41-50 | $790 |
| 51-60 | $1,580 |
| 61-70 | $4220 |
| 71 and older | $5,270 |
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