IRS Announces Increased LTC Insurance Premium Deductibility Limits for 2011

The IRS has announced the 2011 limits on the tax deductibility of qualified long term care insurance premiums. Deductible limits are up across the board from 2010, ranging from $10 for the youngest group to more $130 for the oldest.  The maximum deductible limit for an individual is now $4,240.

The 2011 limits are as follows:

Attained Age Before Close of Taxable Year

Maximum Deductible Limit

Age 40 or less:

$ 340

More than 40 but not more than 50:

$ 640

More than 50 but not more than 60:

$1,270

More than 60 but not more than 70:

$3,390

More than 70:

$4,240

The maximum non-taxable per diem benefit will be $300 in 2010, up $10 from 2010.

 


EMPLOYEE BENEFITS