Costs of long-term care and long-term care insurance qualify as deductible medical expenses

The costs of “qualified long-term care” and insurance coverage for such care qualify as deductible medical expenses. Since nursing home care can be so expensive and insurance for such care is growing in popularity, this deduction may apply to many taxpayers.

Long-term care — a crisis in the making

Long-term care for chronic illness or frailty may be the single greatest financial risk that most older Americans face. The aging of America’s enormous baby boom generation makes certain that the challenge of long-term care will become bigger and far more expensive over time. Long-term care may be on its way to overtaking Social Security and Medicare as our country’s most challenging social issue.

Preparing for market uncertainties

“Fiscal cliff” is the popular term used to describe the conundrum that the U.S. government could face at the end of this year. It is a combination of tax increases and mandatory spending cuts scheduled to occur Jan. 1, 2013. The non-partisan Congressional Budget Office (CBO) projects that this combination of events would lead to a 0.5 percent contraction in the economy for 2013 and add 1.0 percent to the current unemployment levels. Obviously, the earlier the issue is appropriately addressed, the smaller the negative impact will likely be.

Sign up for our email newsletter

Stay on top of government changes affecting your tax and retirement planning and learn investments strategies and planning tips from KraftCPAs email newsletter.

Pages:«123456