There is tons of information that one should know when receiving long term care insurance. Knowing the specific tax information can really help get a better knowledge of this type of insurance and what it covers. ARG and Associates is a commercial insurance company Los Angeles that offers their clients the best long term care insurance plans. Obtaining this type of insurance as early as possible will not only help you save more money, but will give you the best protection and coverage you may need as you grow older. Because nursing homes, assisted living, and medical bills get very expensive as we age, this plan will be as a backbone to help you with some of these costs.
Tax Qualified Long Term Care
Did you know: for tax reasons, long term care insurance is considered as a health insurance plan and accident plan.
The 2016 end of the taxable year premium ages:
If you are age of 40 or less: 2015 limit amount is $380, and 2016 is $390
If you are 41-50: 2015 limit amount is $710 and 2016 amount is $730
If you are 51-60, 2015 limit amount is $1430 and 2016 is $1460
If you are 61- 70, 2015 limit amount is $3800 and 2016 is $3900
If you are 71 and older, 2015 limit is $4750 and 2016 is $4870
When having a joint long term care, this will be owned equally by a couple that qualifies or a husband/wife. Basically, one policy will be purchased instead of two, and this will allow either the husband or the wife to draw from the plan separately if only one will need the support. This is often times more beneficial than having your own plan, which makes it more flexible and obtaining lower premiums every year.
If needed, an “HSA” (Health Savings Account) can be used to help an individual pay Long Term Care insurance plan premiums. The only reasons that this account can be denied is if: 1. You are an individual that is covered by Medicare or 2. If you are an individual who is a dependent, but on another persons income tax return. Also, for a limited time it may be an option for long term care insurance to pay premiums until a specific date period. For this option, ARG and Associates can go over these specific qualifications with you.
If you are self-employed and getting Long term care insurance, those individuals can take the premium amount as a deduction, but only if they make a net profit. It is often found that a self-employed individual will have their spouse employed in their business. If that spouse is employed in your company legitimately, the self-employed can pay the premium for his employee, deducting the premiums. This can be an advantage because the individual who is self-employed can reduce their yearly income tax.
Did you know that if you are an employee in a company, you are not taxed on the premiums that your employer pays? This is included for not just the employee, but for the employee’s spouse, and eligible dependents as well. Did you know that your employer has the option as to whom to select for long term care insurance? Meaning, the employer is allowed to select whoever he chose to pay for this type of plan. Much of this selection could be based off of higher position rankings, the performance of the employees, and other factors. The employer is also able to deduct these premiums from the income of his employees. If you are an employee, your employer may chose to pay and deduct the whole long term care insurance premiums for you, your husband/wife, and other dependents. Normally, an employer will provide this coverage for an employee with a high paid salary. If offered to one with a lower salary, it is typically offered with some type of medical insurance bundle.
There are many other specifics that come into play with long term care insurance plans. This information may seem complicated, but ARG and Associates, a commercial insurance company Los Angeles, will assist you with all of these details. Our team of professionals will properly go over these terms and conditions with you while selecting the best long term care insurance plans for you. Call us today for a free consultation!