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November 30, 2005
2006 Limits Announced for Tax Deductibility of LTCi
Premiums
The IRS has published the 2006 limitations on the tax
deductibility of premiums for “qualified” LTCi policies. Premiums
up to these limits are considered unreimbursed medical expenses and are
deductible to the extent that they, along with other unreimbursed medical
expenses, exceed 7.5% of adjusted gross income.
Amounts above the limits specified here are not considered
to be a medical expense.
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Attained Age
before the close of 2006
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Maximum
Deduction
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40 or less
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$280
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More than 40, but not more than
50
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$530
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More than 50, but not more than
60
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$1,060
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More than 60, but not more than
70
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$2,830
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More than 70
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$3,530
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