State |
Type |
Description |
|
Deduction
|
A state income tax
deduction is allowed for individual taxpayers for the amount of
premiums paid for a qualifying long term care insurance policy.
Policies must be guaranteed renewable and coverage must be equal to or
greater than 3 years of Medicaid coverage.
|
California
|
Deduction
|
A deduction is
allowed beginning in tax years on or after 1/1/97. The maximum amount
deductible is based on a sliding scale, which is increased each year
to account for inflation. Also, beginning in tax year 2003, residents
who need long term care services for at least 180 days can qualify for
a $500 tax credit as long as their adjusted gross income does not
exceed $100,000.
|
Colorado
|
Credit
|
Beginning on or
after January 1, 2000, a credit is allowed for long term care
insurance premiums covering the taxpayer and taxpayer's spouse in an
amount equal to 25% of total premiums paid during the tax year, up to
$150 for each policy. The credit is available to individual taxpayers
with federal taxable income less than $50,000 or two individuals
filing a joint return with taxable income less than $100,000.
|
Hawaii
|
Deduction
|
Beginning after tax
year 1998, Hawaii permits the same deduction as allowed under federal
tax law for long term care insurance premiums. However, the Hawaii
deduction is subject to 7.5% of Hawaii adjusted gross income, instead
of federal adjusted gross income.
|
Idaho
|
Deduction
|
A deduction for 50%
of the premium cost for LTC insurance--to the extent the premium is
not otherwise deducted or accounted for by the taxpayer for Idaho
income purposes-- is allowed for tax years beginning on or after
1/1/2001.
|
Indiana |
Deduction |
Beginning
January 1, 2000, a deduction is allowed in an amount equal to the
portion of any premiums paid during the taxable year by the taxpayer for
a qualified long-term care policy for the taxpayer or the taxpayer's
spouse, or both. |
Iowa
|
Deduction
|
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 are eligible for the federal itemized deduction
for medical and dental expenses.
|
Kentucky
|
Deduction
|
A deduction from
adjusted gross income is allowed for any amount paid during the tax
year (for tax years beginning after 12/31/1997) for long term care
premiums.
|
Maine
(Also see below)
|
Deduction
|
For tax years 1989
through 1999, Maine allowed a deduction to individual taxpayers for
the full premium paid on long term care insurance policies certified
by the Maine Insurance Department as complying with Title 24 A,
Chapter 68. Beginning with tax year 2000, the state income tax
deduction for individual taxpayers applies to premiums paid for
federally tax-qualified long term care insurance policies and the
deduction is limited to the extent the premiums are not claimed as an
itemized deduction on the federal tax return.
|
Maine
|
Credit
|
For employers, a
credit is allowed against the tax imposed for each taxable year equal
to the lowest of the following: (A) $5000; (B) 20% of the costs
incurred by the taxpayer in providing long term care policy coverage
as part of the benefit package; or, (C) $100 for each employee covered
by an employer provided long term care policy.
|
Maryland
(Also see below)
|
Credit
|
Maryland allows an
individual to claim a one-time credit against state income tax for
100% of the eligible federally qualified long term care insurance
premiums, up to $500 for each insured over age 50. For those ages
41-50, the maximum credit is $470. For those less than age 40, the
maximum credit is $250. The amount of the credit cannot exceed the
state income tax for that taxable year and any unused credit for a
taxable year cannot be carried over to any other taxable year. This
credit may not be claimed if the individual was covered by long term
care insurance at any time before July 1, 2000.
|
Maryland
|
Credit
|
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 costs incurred by the
employer during the taxable year for providing long term care
insurance as part of the benefit package. The credit may not exceed
$5000 or $100 for each employee covered by long term care insurance
under the benefit package and applies to all taxable years beginning
after 12/31/1998.
|
Minnesota
|
Credit
|
A credit is allowed
for long term care insurance premiums during the taxable year equal to
the lesser of : (1) 25% of premiums paid to the extent not deducted in
determining federal taxable income; or (2) $100.
|
Missouri
|
Deduction
|
Beginning January
1, 2000, Missouri taxpayers may deduct 50% of all nonreimbursed
amounts paid for qualified long term care insurance premiums to the
extent such amounts are not included in itemized deductions.
|
Montana
|
Deduction
|
Montana allows a
deduction for the entire amount of qualified long term care insurance
premiums covering the taxpayer, and the taxpayer's parents,
grandparents and dependents.
|
Montana |
Credit |
For taxable years
beginning after 1998, a state income tax credit is allowed for
"qualified elderly care expenses" paid by an individual for
the care of a qualified family member. Premiums paid for long term care
insurance coverage for a qualifying family member are included in
qualified elderly care expenses. If a taxpayer takes this credit, they
are prohibited from taking an additional income tax deduction for
premium payments on the same policy for which the credit was taken. |
New York
|
Deduction
|
Premiums paid by
New York State taxpayers for qualifying long term care insurance
policies are tax deductible under New York State and New York City
taxes to the same extent as allowed under federal law. In New York,
this deduction is subtracted from the federal adjusted gross income
and is not itemized under medical care. (Being repealed - see below).
|
New York |
Credit |
Effective for tax
years beginning on or after January 1, 2002, taxpayers will be permitted
a credit for 10% of the premium paid for qualifying long term care
insurance premiums. This change corresponds with the repeal of the
current deduction permitted for the payment of qualifying long term care
premiums. To qualify for the credit, the taxpayer's premium payment must
be for the purchase of a long term care insurance policy approved by the
New York State Superintendent of Insurance. Employers who pay premiums
for the purchase of approved long term care insurance policies on behalf
of their employees are eligible for the credit. A tax payer is permitted
to carry over to future tax years any credit amount in excess of the
taxpayer's tax liability for the year. |
North Carolina
|
Credit
|
A credit is allowed
for premiums paid on long term care insurance in an amount equal to
15% of the premium costs the individual paid during the taxable year
for the individual, spouse, or dependent. The credit may not exceed
$350 for each qualified long term care insurance contract for which a
credit is claimed. The credit is not allowed if a federal deduction is
allowed or if the premium is deducted from, or not included in, gross
income. Credit expires for taxable years on or after 11/1/2004.
|
North Dakota
|
Credit
|
A credit may 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,
step-parent or child. The credit may not exceed $100 in any taxable
year.
|
Ohio
|
Deduction
|
For tax years
beginning January 1, 1999, Ohio allows a deduction of federally
qualified long term care insurance premiums, covering the taxpayer,
the taxpayer's spouse and dependents, to the extent the deduction is
not allowed in computing federal adjusted gross income.
|
Oregon
|
Credit
|
For policies issued
after January 1, 2000, Oregon allows a credit for amounts paid or
incurred for long term care insurance by a taxpayer on behalf of the
taxpayer, the taxpayer's dependents and parents and for amounts paid
or incurred by an employer on behalf of employees. The credit is equal
to the lesser of 15% of premiums paid during the tax year or $500.
|
Utah
|
Deduction
|
Beginning on or
after January 1, 2000, Utah allows a deduction for long term care
insurance premiums to the extent the amount paid for long term care
insurance are not deducted in determining federal income tax.
|
Virginia
|
Deduction
|
A deduction is
allowed from federal adjusted gross income for taxable years beginning
on and after January 1, 2000 for the amount an individual pays
annually in premiums for long term care insurance, provided the
individual has not claimed a deduction for federal income tax
purposes.
|
West Virginia
|
Deduction
|
West Virginia
allows a deduction for premiums paid for a qualified long term care
insurance policy that covers the taxpayer, the taxpayer's spouse,
parent and dependents, to the extent the amount is not allowed as a
deduction when calculating the taxpayer's federal adjusted gross
income.
|
Wisconsin
|
Deduction
|
A deduction is
allowed for 100% of the amount paid for a long term care insurance
policy for the taxpayer and spouse to the extent the same deduction is
not taken for federal income tax purposes. The deduction is allowable
for tax years on and after January 1, 1998.
|
|