Two new guides explaining 2012 tax-deduction limits and regulations for long-term care insurance are available through the American Association for Long-Term Care Insurance.
According to "The Guide to Tax-Qualified Long-Term Care Protection," each individual may be able to deduct as much as $4,370 of the cost of long-term care insurance premiums in 2012.
Long-term care insurance covers services not included in standard health insurance or Medicare policies, such as assistance with daily activities in a nursing home, adult daycare center or private home.
Long-term care insurance premiums are included as health-related expenses and can be deductible up to the yearly aged-based limit. Deductions for the premiums become increasingly meaningful after individuals retire, when incomes generally drop, making it easier to qualify for tax deductions related to health and medical expenses, according to the association.
The association also published the 2012 edition of "The Long-Term Care Insurance Guide For Accountants and CPAs," which explains how the tax rules handle premiums for individuals, the self-employed, limited liability companies and C corporations.
"The special rules that make long-term care insurance fully tax deductible for owners of small and mid-sized businesses are still a well-kept secret," Jesse Slome, the association's executive director, said in a press statement.
To view the guides, go the American Association for Long-Term Care Insurance website.