Some of you may think this topic is irrelevant, but please think twice about it. Providing for our Grandparents, Parents and Ourselves in our “Golden Years’ can be expensive.
However, the bigger issue is that we want to actually ENJOY our later years as well, and not be dependent on the state under the incredible Medicaid Plan…and please forgive me when I say that. I realize many hard-working state employees do their best to administer Medicaid dollars to those in need, but that is exactly what it is: a program set up for the those in need with literally no other assets to pay for their health care.
So, onto the topic at hand! I cannot emphasize enough the power of Long Term Care Insurance…and guess what, I don’t sell it or have a referral for you either. I want to be completely independent when I say that Long Term Care Insurance is something everyone over 50 needs to carefully consider.
But, how can we get the best write-off for this expense too? Many have posed this question to me over the past few months and I’ve needed to address it here in my blog.
So, under “Kohler Care” (as many of you know I joke about and teach in my Workshops and Videos), I make sure ALL of my clients are writing-off their health care expenses; this includes long-term care insurance!
Those with an HSA can pay for the premiums directly out of the HSA.
Those with an HRA can get reimbursed as a business write-off for their long-term care premiums.
The rest of the suckers out there (97% of Americans) try to write it off as an Itemized Deduction and phase out.
HOWEVER, the catch is that there are ‘limits’ on how much you can write-off. The limits range from $350 – $4,370 annually. For more information on the rules for long-term care as a medical expense, please see Publication 502 here (page 11).
In summary, please take the long-term care insurance topic seriously and MAKE SURE your accountant knows how to maximize its benefit on your tax return.
Mark J. Kohler is a CPA, Attorney, Radio Show host and author of the new book “The Tax and Legal Playbook- Game Changing Solutions For Your Small Business Questions” and “What Your CPA Isn’t Telling You- Life Changing Tax Strategies”. He is also a partner at the law firm Kyler Kohler Ostermiller & Sorensen, LLP and the accounting firm K&E CPAs, LLP. For more information visit him at www.markjkohler.com.