Many members of the baby boomer generation feel uneasy about considering assisted living insurance programs because they might not like the idea of spending money on premiums for insurance that they might not need later on in life. One of the great things about getting assisted living insurance, also known as long-term care insurance, is that you’ll qualify for tax credits as well as tax deductions.
If you’re self-employed, the tax advantages for assisted living insurance can increase dramatically. The reason for this is because the deduction will be shaved off the top of your income, which could potentially lead to a thousand dollars a year in lower taxes if you’re part of the 28% tax bracket. Another benefit for self-employed individuals is that they can also include any eligible premiums that are paid to their dependents and their spouse. Assisted living insurance programs won’t require you to be self-employed full time in order to take advantage of the deduction.
Other Individuals Who Benefit from the Assisted Living Insurance Tax Deduction
If you either belong or own a C corporation, you might have the most to gain from the assisted living tax deduction since you’ll have the greatest advantage in deciding what you can do. You should also think strongly about getting assisted living insurance if you’re the owner of a cash-value life insurance program or have a health savings account.
Sit down with a qualified insurance agent today to see how your taxes can benefit from getting assisted living insurance.