IRS doesn’t raise tax deductible LTCI limits for 2022

[Insurance Forums Staff]

Insurance Forums Staff submitted a new article

IRS doesn’t raise tax deductible LTCI limits for 2022

For the first time the Internal Revenue Service has not raised tax-deductible limits for long-term care insurance according to the American Association for Long-Term Care Insurance.

Continue reading the Original Article.

 

[Allen Trent]

With 61% of the US population now paying no federal income taxes (per CNBC), this item is likely a non-issue for most 61% of Americans paid no federal income taxes in 2020, Tax Policy Center says (cnbc.com)

Also, the last I saw about 87% of the population takes the standard deduction & doesnt itemize.



Would first have to be itemizing (13% of population) & then only the LTC premium/medical expenses exceeding 10% or 7.5% of AGI would be able to be itemized(IE- 100k AGI would mean 1st 10k spent on LTC/Medical expenses wouldn't be deductible) & finally all your itemized deductions would need to add up to more than the standard deduction..............................likely only a couple of unicorns that can hit on all these items compared to the past.

If they want less reliance on Medicaid, they will need to make LTC/hybrid an above the AGI line deduction just like IRA contributions, but I dont see that happening anytime soon with all the drunken government spending & printing of money

 

[marindependent]

With 61% of the US population now paying no federal income taxes (per CNBC), this item is likely a non-issue for most 61% of Americans paid no federal income taxes in 2020, Tax Policy Center says (cnbc.com)

Nice QUote

 

[Allen Trent]

Nice QUote

I think your phone autocorrected the word scary to be nice. LOL