| State |
Tax Incentive |
Description |
| Alabama |
Deduction |
For tax years beginning in 1995, a deduction is allowed for individual taxpayers for the amount of premiums
paid for a qualifying long-term care insurance policy. |
| California |
Deduction |
Premiums are deductible subject to dollar maximums based on age for policies purchased for taxable years
beginning in 1997. Dollar maximums are indexed annually. 2003 limits:
| Ages 18-40 $250 |
Ages 61-70 $2,510 |
| Ages 41-50 $470 |
Ages 71+ $3,130 |
| Ages 51-60 $940 |
|
|
| Colorado |
Credit |
Effective 1/1/2000, a credit for 25% of the cost of the policy, up to a maximum of $150 per policy. The
credit is only available to 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. |
| 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 |
50% of premiums for tax years commencing on or after January 1, 2001. Policies must be for the benefit of
the taxpayer, a dependent of the taxpayer, or an employee of the taxpayer. |
| Indiana |
Deduction |
Beginning January 1, 2000, 100% of premiums paid are deductible for Indiana Partnership long-term care policies.
|
| Iowa |
Deduction |
A deduction is allowed for tax years beginning on or after January 1, 1997, for premiums for long term 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 all allowed for any amount paid during the tax year (for tax years
beginning after 12/31/1997) for long term care premiums. |
| Maine |
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. |
| |
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 |
Credit |
Maryland allows an individual to claim a credit against state income tax for 100% of the eligible federally
qualified long term care insurance premiums, up to $500 for each insured covering the individual, the individual's spouse, parent, stepparent,
child or stepchild. This credit may not be claimed if the individual was covered by long term care insurance at any time before July 1, 2000.
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 on the benefit package. The credit may not exceed
$5000 or $100 for each employee covered by the 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 extern not deducted in determining federal taxable income; or (2) $100. |
| Missouri |
Deduction |
A 50% deduction is allowed for his or her non-reimbursed payments for policy premiums to the extent such
amounts are not already included in itemized deductions claimed by the individual. |
| 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. |
| New York |
Credit |
As of January 1, 2002 a 10% tax credit is given per individual. For tax years beginning on or after January
1, 2004, the long-term care insurance credit has been increased to 20% of the premiums paid during the tax year for the purchase of qualifying
long-term care insurance. |
| North Dakota |
Deduction |
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 |
Beginning on or after January 1, 1999 a deduction is allowed for amounts paid by a taxpayer for qualified
LTC insurance for the taxpayer and the taxpayer's spouse and dependents. |
| 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 |
100% of premiums paid are deductible. |
| Virginia |
Deduction |
100% of premiums paid are deductible. |
| West Virginia |
Deduction |
100% of premiums paid are deductible. |
| Wisconsin |
Deduction |
100% of premiums paid are deductible. |
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