State Tax Incentives for Long-term Care Insurance

Deduction

Deduction

Itemized deduction is allowed for medical expenses which include long-term care premiums with no limitation.

Adopts section 213 of Internal Revenue Code for computing medical and dental expense deduction under state income tax law. [AR Code Sec. 26-51-423 Reg. 1.26-51-423(a)(2)]

The same tax deduction as is provided in the Federal Internal Revenue Code. d to the extent provided in the federal Internal Revenue Code. [Ca. Rev&Tax Code 17201 (1996)]

A credit is allowed in taxable years on or after January 1, 2000 for 25% of premiums paid for long-term care insurance or $150.00 per policy. The credit will be available to only individual taxpayers with taxable income of less than $50,000 or two individuals filing a joint return with taxable income of less than $100,000. [C.R.S. 39-22-122 (1999)]

Itemized deductions are allowed to the extent they are allowed for federal income tax purposes. Even if you don't itemize for federal taxes, you can deduct the sum of the itemized deductions to which you would have been entitled had you itemized on federal return.

Effective 1/21/2005, permits a deduction from gross income the amount an individual pays annually in long-term care premiums, provided that the deduction shall not exceed $500.00 per year, per individual, whether the individual files individually or jointly. [Section 47-1803.03 (b-1) of the DC Official Code]

For tax years beginning on or after 01/01/1999. An individual state tax deduction is allowed for premiums paid for long-term care insurance to the extent such premiums are deductible in determining federal taxable income beginning in taxable years after December 31, 1998 and is also only available to the extent that all medical expenses, including long care exceed 7.5% of Hawaii Adjusted Gross Income. [HRS Sec. 235-2.3, (1999)]

A deduction is allowed for taxable years beginning on or after January 1, 2004 for the premiums for long-term care insurance as defined in section 41-4603 Idaho code. For tax years beginning on or after January 1, 2004, allows an individual taxpayer to deduct the full amount of premiums paid for long-term care insurance for the taxpayer, a dependent or am employee. The deduction may be taken for a federally tax qualified long-term care insurance policy meeting Idaho's definition of long-term care insurance. (Prior law allowed for taxpayer to deduct 50% of the costs for premiums, effective 01/01/2004, the limitation is removed, and the full amount of the premium may be deducted.) [Chapter 30, title 63, Sec. 63-3022Q (2004) Reg. 41-4603]

For tax years beginning on or after January 1, 2000. And individual taxpayer is permitted to deduct an amount equal to the eligible portion of premiums paid during the taxable year by the taxpayer for a qualified long-term care policy (as defined in the Indiana code, for the taxpayer, the taxpayer’s spouse, or both. FOR QUALIFIED PARTNERSHIP POLICES ONLY. [In Code Secs. 6-3-1-3.5]

A deduction is allowed for tax years beginning on or after January 1, 1997. For premiums for long-term-care insurance for nursing home coverage to the extent the premiums for long-term health care services are eligible for the federal itemized deduction for medical and dental expenses. Adopts section 213 of Internal Revenue Code for computing medical and dental expense under state income tax law. [IAC Ch. 40 701-40.49(422); IAC 422.7(1997)

A deduction for tax year beginning after 12/31/2004 is allowed up to $500 of qualified long-term care premium costs. The deduction increases by $100 each year to a maximum of $1000. (K.S.A. 2000 supp. 79-32 117©(xvi) 2004) HB 2545

Exclusion for tax years beginning on or after January 1, 1999, a taxpayer may exclude from Kentucky adjusted gross income any amounts paid for long-term care insurance as defined in the Kentucky code. (KY. Rev Stat. Sec. 141.010 (10)(m) Reg. 304.14-600 & 610.

A deduction is allowed for an amount equal to the total premium spent for insurance policies for long-term care that have been certified by the superintendent of Insurance as complying with title 24-A /Chapter 68. For tax years beginning on or after 01/01/2004, a taxpayer may tax a state income tax deduction an amount equal to the total premiums spent for long-term care insurance, as long as the amount subtracted is reduced by any amount claimed as a deduction for federal income tax purposes. [36 ME Rev. Stat. Sec. 5122] Amended 5/11/2004 [Title 36, Part 8, Chapter 805, Sec. 5122 (1989)]

A credit is allowed against the state income tax for employers providing long- term care insurance up to an amount equal to 5% of the cost incurred by the employer during the taxable year for providing long-term care insurance as part of the employee benefit pack. The credit may not exceed $5,000 or $100 for each employee covered by long-term care insurance under the employer benefit package and it is applicable to all taxable years beginning after 12/31/1998. [Ins. Art. 6-117, Chapter 7 (1998)] MD Tax Code Sec.10-710

A one-time credit is allowed in the amount equal to 100% of the eligible federally qualified long-term care insurance premiums covering the individual, spouse, parent, step-parent, child, or step-child, not to exceed $500 effective July 1, 2000 for taxable years beginning after December 31, 1999. [Chapter 242, Section 10-718 (2000)]

For tax years beginning on or after January 1, 1999. A credit is allowed for long-term care insurance premiums during the taxable year equal to either, (1) 25% of premiums paid to the extent not deducted in determining federal taxable income; or (2) $100. Maximum allowable credit per year is $200 for couples filing jointly and $100 for all other filers.[Sec. 21, Sec. 290.0672 subdivision 2 (2000)]

A deduction is allowed for a resident from state taxable income for an amount equal to 50% of all non reimbursed amounts paid by an individual for qualified long-term care insurance premiums to the extent such amounts are not included in the individual's itemized deduction for all taxable years beginning after December 31, 1999. [Section 8 of R.S. MO 334660 (1999)] [MO. Rev. Stat. Sec. 135.096] Sec 376.951-376.958 of MO long-term care Insurance Act.

A deduction is allowed for all premium payments made directly by the taxpayer for long-term care insurance policies or certificates that provide coverage primarily for any qualified long-term care services as defined in 26 U.S.C. 7702B © beginning after 12/31/1994 or of the taxpayer’s parents, grandparents, or both for taxpayers beginning after 12/31/1996. [Chapter 111, (1997)]

Permits deduction for premiums paid for a qualified long-term care insurance contract defined in Internal Revenue Code section 7702(B), as part of unreimbursed or uncompensated medical care expenses. Total medical expense deduction is limited, based on income level. [NM Stat. Ann. Sec. 7-2-35]

A credit is allowed equal to 20% of the premium paid during the taxable year for long-term care insurance approved the superintendent of Insurance provided policy qualifies for such credit pursuant to Section 1117. If the amount of credit allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess may be carried over the following year or years and may be deducted from the taxpayer's tax for such year or years and applies to taxable years beginning on or after January 1, 2004. [Sec. 210, subdivision 25-0-1 Chapter 58 (2004)] {NY Tax Law Sec. 606(aa)]

A credit is allowed to be applied against an individual's tax liability in the amount of 25% of any premiums paid by the taxpayer for long-term care insurance coverage for the taxpayer or the taxpayer's spouse, parent, stepparent or child. The credit may not exceed $100 in any taxable year. [Title 57, Chapter 57-38 (1997)]

A deduction is allowed for individual policy premiums paid for qualified long-term care insurance effective foe taxable years beginning January 1, 1999. Generally allows a deduction for the amount paid for qualified long-term care insurance for the taxpayer, spouse, and dependents. [OH Rev. Stat. Sect. 5747.01 (1999)]

Permits the same tax deduction as is allowed for federal income tax purposes. [68 OK Stat. Sec. 2353]

A credit is allowed for amounts paid or incurred for long-term care insurance by an individual on behalf of individual, dependents or parents and for amounts paid or incurred by employer on behalf of employees. Limits credit to a lesser of 15% of premiums or $500. In order for the credit to be available the policy must be issued after January 1, 2000. The credit is not refundable and cannot be carried forward.[OR Rev. Stat. Sec 315.610 Sec. 743.652 (Definitions for Secs. 743.650-743.656

A deduction is allowed from federal taxable income of a resident or nonresident individual for tax years beginning on or after January 1, 2000, of any amounts paid for premiums on long-term care insurance policies to the extent the amounts paid were not deducted under Section 213 of the Internal Revenue Service Code in determining federal taxable income. This deduction is for all premiums paid for long-term care insurance as defined under the Utah code.
[Chapter 60, 59-10-114(1999)] [UT code Sec. 59-10-114(2)(k) Sec. 31A-1-301

Virginia provides a credit against individual income as of July 1, 2006 for LTC insurance premiums paid on or after January 1, 2006. The amount of the credit for each taxable year equals 15% fo the amount paid by the individual in LTC insurance premiums and is not to exceed over the life of any policy 15% of the amount of premiums paid for the first 12 months of coverage. If the credit exceeds the individual's income tax liability for the tax year, the excess amount can be carried over for credit against the income taxes of the individual for the next five years or until the credit is used, whichever comes first. To claim the credit, the individual must attach to his individual income tax return proof of payment for the LTC insurance premiums.

A deduction is allowed for taxable years beginning on and after January 1, 2000, for any payment during the taxable year for premiums for a long-term care insurance policy that offers coverage either the taxpayer, spouse, parent or dependent, only to the extent the amount is not allowable as a deduction when arriving at the taxpayer's adjusted gross income. Premiums for long-term care insurance are those premiums as they defined in WV Code. [Art. 21 11-21-12C, Chapter 11 (2000)] [WV Code Sec. 11-21-12C & 33-15A-4]

Allows a person to subtract from federal adjusted gross income a portion of the amount paid for long-term care insurance for taxpayer and his spouse when computing WI taxable income beginning on or after January 1,1998. [WIS.STAT '71.05(6)(b)26 (1997)