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State
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Tax Treatment
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Reference
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Alabama
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Deduction
Permits a deduction for the
premium paid for qualified long term care coverage under a policy that meets
the requirements of Alabama Code Section 27-47-2.
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Ala. Code. 40-18-15 Rev
& Tax Reg. 810-3 15.26
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Arkansas
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Deduction
Adopts section 213 of Internal
Revenue Code for computing medical and dental expense deduction under state
income tax law
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Ark. Code Sec. 26-51-423
Reg. 1.26-51-423(a)(2)
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California
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Deduction
Permits the same tax deduction
as is allowed for federal income tax purposes
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Cal. Rev. & Tax. Code
Sec 17201
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Colorado
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Credit
State income tax credit equal
to the lesser of 25% of premiums paid for a long term care insurance policy
or $150 per policy. Individuals who
qualify for the credit are those with federal taxable income less than
$50,000 ($100,000 for joint filers claiming a credit for 2 policies.) A long term care policy must meet
Colorado’s definition of long term care.
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Col. Rev. Stat. Sec. 39-22-122
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District of
Columbia
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Deduction
Effective 1/21/05, 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.
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Section
47-1803.03 (b-1) of the DC Official Code
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Hawaii
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Deduction
For tax years beginning on or
after January 1, 1999, an individual state tax deduction is allowed for long
term care insurance premiums. This
deduction is limited in the same manner as the deduction on the federal
level, and is also only available to the extent that all medical expenses,
including long term care premium, exceed 7.5% of Hawaii Adjusted Gross
Income.
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Hawaii Rev. Stats. 235-2.3 & 235-2.4
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Idaho
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Deduction
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 an 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.
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Idaho Code Sec. 63-3022Q
Reg. 41-4603
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Indiana
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Deduction
For tax years beginning on or
after January 1, 2000, an 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 Policies Only.
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Ind. Code Secs. 6-3-1-3.5 and IC12-15-39.6-5
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Iowa
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Deduction
Adopt section 213 of Internal
Revenue Code for computing medical and dental expense under state income tax
law.
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Iowa Admin. Code Sec. 701-40.38(422)
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Kansas
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Deduction
For the tax years beginning
after 12/31/04 allows for the deduction for state income tax purposes from
federal adjusted gross income, in an amount not to exceed $500 of the premium
costs for LTC insurance. The deduction amount increases $100 for each year
thereafter until the amount the amount reached is $1,000.
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Hb
254- Signed by Governor on 5/31/04
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Kentucky
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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.
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Ky. Rev. Stat Sec. 41.010(10)(m)
Reg. 304.14-600 & 610
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Maine
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Deduction
For tax years beginning on or after January 1,
2004 a taxpayer may take a state income tax deduction an amount equal to the
total premiums spent for LTC insurance, as long as the amount subtracted is
reduced by any amount claimed as a deduction for federal income tax purposes.
Credit
Tax credit for employers
providing long term care benefits to employees under a federally
tax-qualified policy equal to the lowest of $5000; 20% of costs; or $100 for
each covered employee.
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36
Me. Rev. Stat. Sec. 5122 Amended 5/11/04
36 Me. Rev. Stat. Secs. 5217-C
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Maryland
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Credit
For tax years beginning on or
after January 1, 1999, an employer may claim a tax credit for a portion of
the costs incurred by the employer during the taxable year to provide long
term care insurance as part of an employee benefit package. The credit is equal to the lesser of: 1)
5% of the employers cost in providing a Long Term Care Benefit, 2) $5000, or
3) $100 for each employee in the state covered by Long Term Care Insurance
under the Employer’s plan.
Credit
For tax year beginning on or
after January 1, 2000, an individual may claim a credit equal to 100% of
“eligible long term care premiums” paid during the taxable year for long term
care insurance covering the individual or the individual’s spouse, parent,
stepparent, child or stepchild.
Credit may not exceed $500 for each insured, and may not be claimed
with respect to an insured if the insured individual was covered by long term
care insurance at any time before July 1, 2000, or the credit has been
claimed with respect to that insured individual by any taxpayer for any prior
taxable year.
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Md. Tax Code Sec. 10-710
Md. Tax Code Sec. 10-718
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Minnesota
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Credit
For tax years beginning on or
after January 1, 1999, a taxpayer is allowed a tax credit for premiums paid
during the tax year for long term care insurance. The Credit for each policy is equal to the lesser of 25% of
premiums paid or the extent not deducted in determining federal taxable
income OR $100. Maximum allowable
credit per year is $200 for couples filing jointly and $100 for all other
filers.
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Minn. Stat. Sec 290.0672
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Missouri
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Deduction
For tax years beginning on or
after January 1, 2000, an individual may take a state tax deduction equal to
50% of unreimbursed payments for qualified long term care insurance premiums
(as defined by Missouri LTC statutes) which are not included in an
individual’s itemized deductions.
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Mo. Rev. Stat. Sec. 135.096 Secs. 376.951 – 376.958 of
Missouri Long Term Care Insurance Act.
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Montana
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Deduction
A deduction is generally
allowed for the entire amount of qualified long term care premiums paid by
the taxpayer.
Credit
A limited credit is available
for expense of caring for certain elderly family members (which includes
premiums paid for long term care insurance coverage). The amount of credit is determined based
on the taxpayer’s adjusted gross income and cannot exceed $5,000 per
qualifying family members in a taxable year ($10,000 for two or more family
members).
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Mont. Code Sec. 15-30-121
Mont. Code. Sec. 15-30-128
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New Jersey
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Deduction
Allows a deduction for medical
expenses (including long term care insurance premiums), to the extent such
expenses exceed 2% of taxpayer’s gross income.
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N.J. Stat. Sec. 54A:3-3
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New Mexico
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Deduction
Permits a deduction for the
premium paid for a qualified long term care insurance contract as 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.
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N.M. Stat. Ann. Sec.7-2-35
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New York
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Credit-
Amended 8/20/04
Allows a tax credit equal to
20% of the premium paid during the taxable year for long term care insurance
(provided the sitused policy has been approved by 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 to the following year or years and may be deducted from the taxpayer’s
tax for such year or years.
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NY Tax Law Sec. 606(aa)
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North Dakota
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Credit
Credit against an individual’s
tax liability provided to each taxpayer in the amount of 25% of any premiums
paid by the taxpayer for long term care insurance coverage for the taxpayer,
a taxpayer’s spouse, parent, stepparent, or child. The credit cannot exceed $100 for each insured individual in
any taxable year.
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N.D. Cent. Code Sec.
57-37-29.2 Reg. 26.1-45-01
Rule 81-03-02.1-11
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Ohio
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Deduction
Generally allows a deduction
for the amount paid for qualified long term care insurance for the taxpayer,
his spouse, and dependents.
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Ohio Rev. Code Sec. 5747.01(A)(11)
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Oklahoma
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Deduction
Permits the same tax deduction
as is allowed for federal income tax purposes.
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68 Okla. Stat Sec. 2353
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Oregon
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Credit
Permits an income tax credit
equal to the lesser of 15% of long term care insurance premiums paid by a
taxpayer or $500 if the long term care insurance is covering the individual
and dependents or parents. 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.
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Or. Rev. Stat. Sec. 315.610
Sec.743.652 (Definition for Secs. 743.650-743.656)
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Utah
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Deduction
Permits a deduction for all
resident or nonresident taxpayers for all premiums paid for long term care
insurance as defined under the Utah Code.
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Utah Codes Sec.
59-10-114(2)(K)
Sec. 31A-1-301
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Virginia
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Deduction
The amount paid in long term
care premiums may be deducted from federal adjusted gross income in computing
VA taxable income.
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Va. Code Sec. 58.1-322(D)(10)
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West Virginia
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Deduction
A deduction is allowed for
resident taxpayers for amounts paid during the taxable year for premiums for
long term care insurance as defined in the West Virginia Code, for taxpayer,
taxpayer’s spouse, parent, or dependent, from the federal adjusted gross
income reported on the WVA state tax return.
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W.VA. Code Secs. 11-21-12c
& 33-15A-4
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Wisconsin
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Deduction
Allows a deduction for up to
100 percent of the cost of a long term care insurance policy.
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Wis. Stat. Sec. 71.05(6)(b)26
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