Tax Benefit to Individuals
The 1996 passage of HIPAA provided a tax incentive for individuals to take financial responsibility for their long-term care needs.
State
New York State offers a TAX CREDIT OF 20% OF YOUR PREMIUM. Other states vary on credit and deductions.
Federal
Federal - The LTC premium deduction are age based deductions
Self-Employed Individuals, S Corp.'s, Partnerships and LLC's
These individuals and their spouses can deduct a percentage of their eligible LTC premiums as a health insurance cost without regard to 7.5% of AGI.
| Age Banded Eligible Deductible Premium Limit | ||
| Taxpayer's Age At End of Tax Year | 2011 | 2012 |
| Less than 40 | $340 | $350 |
| More than 40 but not more than 50 | $640 | $660 |
| More than 50 but not more than 60 | $1,270 | $1310 |
| More than 60 but not more than 70 | $3,390 | $3500 |
| More than 70 | $4,240 | $4370 |