LTC Insurance Premium Tax Deduction - H.R.831/S.627
With the passage of the long term care bill by the 106th Congress,
we will soon have the ability to purchase LTC insurance at unsubsidized
but reduced rates. OPM plans to have a choice of plan available before
the end of 2002.
Representative Johnson has introduced H.R.831 It amends the Internal Revenue
Code to allow: (1) a deduction (based on years of continuous coverage) for
eligible long-term care insurance premiums for a taxpayer, spouse, and
dependents, including accelerated deduction percentages for persons who
are 55 years old; and (2) long-term care insurance to be offered under
cafeteria plans and flexible spending arrangements. It also allows an
income-adjusted (limited) credit for eligible individuals with long-term
care needs. It sets forth specified requirements for qualifying long-term
care insurance contracts.
Senator Grassley has introduced an identical bill S.637 in the Senate.
We need more co-sponsors for these bills. We have a good start, as you can see
by clicking Co-sponsors of H.R.831 and Co-sponsors of S.627. For a letter
requesting co-sponsorship, click on Sample for language you can use.