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2021 Tax Deductible Limits For Qualified Long-Term Care Insurance Announced

 

The following are the new 2021 deductible limits (2020 in brackets): 2020 Tax Deductible Limits Long-Term Care Insurance Premiums paid for traditional long-term care insurance are included as ‘medical care’.   The following are the just announced 2020 limits (per-individual):

Attained Age Before Close of Taxable Year                       2021 Limit               (2020 Limit)
40 or less                                                                                   $450                         $430
More than 40 but not more than 50                                           $850                          $810
More than 50 but not more than 60                                          $1,690                     $1,630
More than 60 but not more than 70                                          $4,520                     $4,350
More than 70                                                                            $5,640                     $5,430

The Internal Revenue Service announced the increased limits for tax deductibility of long-term care insurance premiums.  According to IRS Revenue Procedure 2019-44, a couple age 70 or older who both have the right kind of long-term care insurance policy can deduct as much as $11,080 in 2020.  Compared to the 2020 limit of $10,860.