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Life Events


Every stage of life has its own financial needs and concerns. The life events on this page can help you target the key financial strategies and issues that are likely to be most important to you in this stage of your life.

Starting Out    Changing Jobs    Coping with Unemployment    Getting Married    Starting a Family    Buying a Home    Saving for College    Starting a Business    Planning/Saving for Retirement    Managing College Expenses    Long-Term Care Planning    Planning an Estate    Nearing Retirement/Retirement    Loss of Spouse    Financial Windfall    Getting Divorced   
 
Can I deduct premiums paid for long-term care insurance (LTCI)?

Answer:

It depends on several factors. Your LTCI contract must be a qualified one, you must itemize deductions on Schedule A of IRS Form 1040, and the total of your medical expenses (including your LTCI deduction) must exceed 10 percent of your adjusted gross income (AGI). Qualified LTCI premiums are deductible as medical expenses (subject to the 10 percent of AGI floor) within certain limits, based on your age.

Note: Prior to 2013, the threshold to deduct medical expenses was 7.5 percent of adjusted gross income. The threshold remains 7.5 percent until 2017 for those age 65 or older.

If you bought your policy before January 1, 1997, and it met the requirements of the state in which it was issued, it is automatically considered a qualified policy. LTCI contracts issued subsequently are only considered qualified for a tax deduction if they meet certain federal standards. In 2017, qualified LTCI premiums are deductible as medical expenses (subject to the 10 percent of AGI floor) within the following limits, based on your age at the end of the tax year:

Age:

Limit on Deduction:

40 or less

$410 (up from $390 in 2016)

41-50

$770 (up from $730 in 2016)

51-60

$1,530 (up from $1,460 in 2016)

61-70

$4,090 (up from $3,900 in 2016)

71 and older

$5,110 (up from $4,870 in 2016)

For more information, consult a tax professional.



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 Doncaster Insurance & Financial Services, Inc.  1020 N. Center Parkway #C  Kennewick, WA 99336  www.tomdoncaster.com Securities and advisory services offered through Independent Financial Group, LLC a registered broker/dealer an Investment Advisor and member of FINRA and SIPC.  This is not an offer to sell securities, which may be done only after proper delivery of a prospectus and client suitability has been reviewed and determined.  Doncaster Insurance & Financial Services, Inc and Independent Financial Group, LLC are unafiliated entities.   OSJ Branch:  12671 High Bluff Dr. Suite 200  San Diego, CA 92130
 
Office Hours of Operation for Doncaster Insurance & Financial Services, Inc:   Monday - Thursday  9 am to 4 pm (Noon - 1 pm Lunch)

This communication is strictly intended for individuals residing in the state(s) of AZ, CA, ID, MO, OK, OR and WA. No offers may be made or accepted from any resident outside the specific states referenced.
 


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