Long-term care is getting a boost from the IRS this year, in 2016.
The tax man will be increasing the deduction available to those who purchase long-term care insurance.
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For those ages 40 and under, the limit is increasing $10, from $380 to $390.
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For ages 41-50, the limit is increasing $20, from $710 to $730.
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For ages 51-60, the limit is only increasing $30, from $1,430 to $1,460.
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For ages 61-70, the limit is increasing $100, from $3,800 to $3,900.
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For those older than 70, the limit is being hiked $120, from $4,750 to $4,870.
Clearly, the changes aren't huge, but they changed more than a number of other deductions. The standard deduction for singles and married couples filing jointly will remain the same, at $6,300 and $12,600, respectively.
“The increase is a positive sign that the government recognizes it needs to encourage people to do long-term planning for themselves,” Jesse Slome, executive director of the American Association for Long Term Care Insurance, told Financial Advisor.
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