Page 71 - Growing Old Without a Plan for Long Term Care is not for Sissies_Neat

What Does the IRS Have to Say About This? 53 therefore the employer can be selective on what classifcation of employees are included in the plan. State Tax Considerations Most states that have an income tax allow some type of deduction for qualifed Long Term Care Insurance premiums. This varies by state so check with your state department of revenue or your tax advisor Suggestions If you are considering purchasing a Long Term Care Insur- ance policy, be sure to ask your agent if the policy is tax quali- fed at both the federal and state level. If you already own a policy, make sure your tax advisor is aware of your policy and the premium you pay for it so he\she can apply the appropriate deduction on your tax return. When deciding whether to purchase a Long Term Care Insur- ance policy, consider both the before tax and after tax cost of the policy. A policy that at frst seems too costly may be affordable when you maximize the tax deductibility of the purchase. If you are the owner of a C-Corp, take advantage of the tax laws concerning Long Term Care Insurance. Reward and help keep your top employees by offering them a Long Term Care Insurance policy paid in part or in full by the corporation. The premium is deductible and you may qualify for simplifed underwriting and/or a group discount. This information is condensed from “Long-Term Care Insurance Protection, A Special Guide for Accountants and CPAs” published by the American Association for Long Term Care Insurance. If