Home

Proposed Legislation Offers LTC Tax Benefits

Wed, 03/21/2001 - 12:00am — Karen Stevenson
Description: 

Submitted by Kim Purcell

Congresswoman Nancy Johnson (R-CT), Chairwoman of House Ways and Means Health Subcommittee, has introduced HR 831, a bill which would provide additional tax deductions and credits for long term care insurance and caregiving expenses. HR 831 has a number of interesting provisions. It would give higher deductions for long term care insurance premiums to people who have owned policies for a number of years. People under age 55 who have owned policies for 4 years or more would be able to get a full deduction of their premiums, and people aged 55 or over would get the full deduction if they've owned a policy for two years or more. The proposed legislation also would allow long term care insurance to be included in cafeteria plans and flexible spending arrangements.

In addition to the provisions for long term care insurance premiums, HR 831 provides for a $1,000 "caregiver" tax credit for each qualified person under the care of the taxpayer claiming the credit. There are a number of restrictions, including a requirement that the person receiving care be living in the same household as the taxpayer.

The bill is co-sponsored by Jim McCrey (R-LA), Karen Thurman (D-FL), and Earl Pomeroy (D-ND). Contact the sponsors or read the text of the legislation for more information.

Submitted by Kim Purcell

Congresswoman Nancy Johnson (R-CT), Chairwoman of House Ways and Means Health Subcommittee, has introduced HR 831, a bill which would provide additional tax deductions and credits for long term care insurance and caregiving expenses. HR 831 has a number of interesting provisions. It would give higher deductions for long term care insurance premiums to people who have owned policies for a number of years. People under age 55 who have owned policies for 4 years or more would be able to get a full deduction of their premiums, and people aged 55 or over would get the full deduction if they've owned a policy for two years or more. The proposed legislation also would allow long term care insurance to be included in cafeteria plans and flexible spending arrangements.

In addition to the provisions for long term care insurance premiums, HR 831 provides for a $1,000 "caregiver" tax credit for each qualified person under the care of the taxpayer claiming the credit. There are a number of restrictions, including a requirement that the person receiving care be living in the same household as the taxpayer.

The bill is co-sponsored by Jim McCrey (R-LA), Karen Thurman (D-FL), and Earl Pomeroy (D-ND). Contact the sponsors or read the text of the legislation for more information.