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.

For those ages 40 and under, the limit is increasing $10, from $380 to $390.

For ages 41-50, the limit is increasing $20, from $710 to $730.

For ages 51-60, the limit is only increasing $30, from $1,430 to $1,460.

For ages 61-70, the limit is increasing $100, from $3,800 to $3,900.

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.

While long-term care is a salient subject for those looking ahead to their retirement years, it is also of interest to millennials who are worried about having to care for their parents. A recent survey showed that many young people are interested in the prospect of starting to plan for long-term care before their parents did.

Women, who are more likely to bear the burden of caring for older relatives, showed more interest in planning ahead for their own long-term care than men.

Instant Insights /

IRS increasing deductions for long-term care

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