The key to understanding how you are compensated and the taxes that are deducted from your income is to understand your paycheck stub also known as the explanation statement. Knowing where your money is going can play an important role in effective money management and proper budgeting.
Some state governments give tax incentives in the form of tax credits and/or tax deduction. Regulations on tax credits and deduction differ per state but they were all created to make long term care insurance more affordable. In most cases, people prefer tax credits because the computed tax savings are often bigger.
Acquiring long term care (LTC) is not easy on the pocket, so the government is constantly looking for ways to provide the public a breathing space. For now, there’s long term care tax deduction to be thankful for.