New 2024 Tax Deductible Limits for LTCi Announced
Individual taxpayers can treat premiums paid for tax-qualified long-term care insurance for themselves, their spouse or any tax dependents (such as parents) as a personal medical expense.
The yearly maximum deductible amount for each individual depends on the insured’s attained age at the close of the taxable year (see table below for current limits). These deductible maximums are indexed and increase each year for inflation. NOTE: the 2024 limits are decreased … for the first time … though the decrease is generally minimal.
The following are the new 2024 deductible limits (2023 in brackets):
|Attained Age Before Close of Taxable Year||2024 Limit (2023)|
|40 or less||$470 ($480)|
|More than 40 but not more than 50||$880 ($890)|
|More than 50 but not more than 60||$1,760 ($1,790)|
|More than 60 but not more than 70||$4,710 ($4,770)|
|More than 70||$5,880 ($5,960)|
Be on the lookout for updated Tax Deductibility pieces – coming soon!