The information provided in this chart is general and informational only. The information is not tax advice and does not guarantee that state benefits will be available. One should consult his/her tax advisor to determine if state tax benefits are available in his/her situation. This chart represents state law as it existed when this chart was created and may not reflect recent changes in state law.
|
STATE |
SUMMARY |
Alabama |
DEDUCTION A deduction is allowed for the amount of premiums paid pursuant to a qualifying insurance contract for qualified LTC insurance coverage, subject to specified limitations. |
Alaska |
None |
Arizona |
CREDIT If an individual is not claiming itemized deductions on his Arizona tax return, the amount of premium costs for LTC insurance, as defined by Arizona law, shall be deducted from his Arizona gross income. |
Arkansas |
DEDUCTION Permits the same tax deduction as is allowed for federal income tax purposes for premiums paid for the purchase of qualified LTC insurance. |
California |
DEDUCTION Permits the same tax deduction as is allowed for federal income tax purposes for premiums paid for the purchase of qualified LTC insurance. |
Colorado |
CREDIT State income tax credit equal to the lesser of 25% of premiums paid for an LTC 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). An LTC insurance policy must meet Colorado’s definition of long-term care. |
Connecticut |
None |
Delaware |
None |
District of |
DEDUCTION A deduction in the amount an individual pays annually in premiums paid for LTC insurance is permitted from gross income, provided that the deduction not exceed $500 per year, per individual, whether the individual files individually or jointly. An LTC insurance policy must meet the District of Columbia’s definition of long-term care. |
Florida |
None |
Georgia |
None |
Hawaii |
DEDUCTION An individual state tax deduction is allowed for LTC 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, exceed 10% of Hawaii Adjusted Gross Income instead of the Federal Adjusted Gross Income. |
Idaho |
DEDUCTION Premiums paid during the taxable year, by a taxpayer for LTC insurance, which LTC insurance is to be for the benefit of the taxpayer, a dependent of the taxpayer, or an employee of the taxpayer, may be deducted from taxable income to the extent that the premium is not otherwise deducted or accounted for by the taxpayer for Idaho income tax purposes. The deduction may be taken for a federally tax-qualified LTC insurance policy meeting Idaho’s definition of LTC insurance. |
Illinois |
None |
Indiana |
DEDUCTION (This deduction applies only to IN Partnership Policies.) 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 LTC insurance policy (as defined in the Indiana Code) for the taxpayer, the taxpayer’s spouse, or both. Deduction only applies to the Partnership program. Ind. Code § 6-3-1-3.5 and § 12-15-39.6.5 (Qualified Long-Term Care Policy). |
Iowa |
DEDUCTION Permits tax deduction from net income for premiums paid for LTC insurance coverage for nursing home coverage to the same extent allowable under federal law and to the extent not otherwise deducted in computing Adjusted Gross Income. |
Kansas |
None |
Kentucky |
DEDUCTION A taxpayer may deduct from Kentucky Adjusted Gross Income any amounts paid for LTC insurance as defined in the Kentucky Code. |
Louisiana |
CREDIT A credit against the individual income tax for amounts paid as premiums for eligible LTC insurance. The amount of the credit shall be equal to 10% of the total amount of premiums paid annually by each individual claiming the credit and must meet the specified qualification requirements. |
Maine |
CREDIT An employer providing long-term care benefits to its employees may qualify for the tax credit. A credit is allowed against the tax imposed for each taxable year equal to the lowest of the following: (A) $5,000; (B) 20% of the costs incurred by the taxpayer in providing LTC insurance policy coverage as part of the benefit package; or (C) $100 for each employee covered by an employer-provided LTC insurance policy. DEDUCTION A taxpayer is entitled to a state tax deduction for qualified LTC insurance premiums as long as the amount deducted is reduced by any amount deducted for federal income tax purposes and by any LTC insurance premiums claimed as an itemized deduction pursuant to Maine Rev. Stat. tit. 36 section 5125. The long-term care contract must be certified under Maine Revised Statutes Ann. Title 24-A., Section 5075-A. |
Maryland |
CREDIT A credit is allowed against the state income tax for employers providing LTC insurance up to an amount equal to 5% of the costs incurred by the employer during the taxable year for providing LTC insurance as apart of an employee benefit package. The credit may not exceed $5,000 or $100 for each employee covered. A one-time credit is allowed per individual against the state income tax in an amount equal to 100% of the eligible federally qualified LTC insurance premiums covering the individual, spouse, parent, step-parent, child, or step-child, not to exceed $500. |
Massachusetts |
None |
Michigan |
None |
Minnesota |
CREDIT A taxpayer is allowed a tax credit for premiums paid during the tax year for LTC insurance (as defined under Minnesota law). The Credit for each policy is equal to the lesser of 25% of premiums paid to 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. Any unused tax credit may not be carried forward to future tax years. No credit is allowed if the taxpayer deducted the premium amounts when net taxable income was calculated or the premiums were excluded from net taxable income. |
Mississippi |
CREDIT A credit is allowed against income taxes imposed under Chapter 7 in an amount equal to 25% of the premium costs paid during the taxable year for a qualified LTC insurance policy that offers coverage to either the individual, spouse, parent or parent-in-law, or dependent. The credit shall not exceed $500 or the taxpayer’s income tax liability, whichever is less, for each qualified LTC insurance policy. Any unused tax credit may not be carried forward to future tax years. No credit is allowed if the taxpayer deducted the premium amounts when net taxable income was calculated or the premiums were excluded from net taxable income. |
Missouri |
DEDUCTION A resident individual may deduct from each individual’s Missouri taxable income an amount equal to 100% of all nonreimbursed amounts paid by such individuals for qualified LTC insurance premiums to the extent such amounts are not included in the individual’s itemized deductions. A married individual filing a Missouri income tax return separately from his or her spouse shall be allowed to make a deduction pursuant to this section in an amount equal to the proportion of such individual’s payment of all qualified LTC insurance premiums. The director of the department of revenue shall place a line on all Missouri individual income tax returns for the deduction created by this section. |
Montana |
CREDIT A limited credit is available for the expense of caring for certain elderly family members (which includes premiums paid for LTC insurance coverage). The amount of credit is determined based on the taxpayer’s adjusted gross income and cannot exceed $5,000 per qualifying family member in a taxable year ($10,000 for two or more family members). DEDUCTION A deduction is allowed for all premium payments made directly by the taxpayer for LTC insurance policies or certificates that provide coverage primarily for any qualified long-term care services for the taxpayer, the taxpayer’s parents, or the taxpayer’s grandparents. In order to take this deduction, the premiums must not have been deducted elsewhere on your tax return when you determine your Montana adjusted gross income. |
Nebraska |
DEDUCTION Allows a state income tax deduction for The Nebraska Long-Term Care Savings Plan contributions of up to $2,000 per married filing jointly return or $1,000 for any other return, to the extent not deducted for federal income tax purposes. |
Nevada |
None |
New Hampshire |
None |
New Jersey |
DEDUCTION Allows a deduction for medical expenses (including LTC insurance premiums for taxpayers, their spouses or dependents) to the extent such expenses exceed 2% of taxpayer’s gross income. |
New Mexico |
CREDIT Allows taxpayers 65 and older and not a dependent of another taxpayer to claim a credit of $2,800 for medical care expenses, which includes LTC insurance premiums, paid for the taxpayer, spouse, or dependents if expenses equal $28,000 or more within a taxable year and if expenses are not reimbursed or compensated. EXEMPTION Taxpayers 65 and older are entitled to an exemption of $3,000 for medical care expenses, which include LTC insurance premiums, if such expenses equal $28,000 or more within a taxable year and are unreimbursed or uncompensated. |
New York |
DEDUCTION Determination of adjusted gross income generally conforms to the federal income tax code. CREDIT A credit for personal income tax is allowed equal to 20% of the premium paid during the taxable year for qualified LTC insurance. A credit is allowed against the corporation tax equal to 20% of the premiums paid during the taxable year for qualified LTC insurance. The credit may not reduce the tax payable to less than the state minimum tax, but any excess credit may be carried forward. An S corporation is allowed a credit against the personal income tax equal to 20% of the premium paid during the taxable year for qualified LTC insurance. |
North Carolina |
None |
North Dakota |
CREDIT Allows for a tax credit equal to premiums paid but not to exceed $250 in each taxable year for state residents who paid premiums on a North Dakota long-term care partnership qualified plan covering the taxpayer or his/her spouse. |
Ohio |
DEDUCTION Allows a deduction for the amount paid for qualified LTC insurance for the taxpayer, his/ her spouse, and dependents (but only to the extent not otherwise allowable as a deduction or exclusion in computing federal or Ohio adjusted gross income). |
Oklahoma |
DEDUCTION Permits the same tax deduction as is allowed for federal income tax purposes. |
Oregon |
CREDIT A credit is allowed for amounts paid or incurred for LTC insurance by an individual on behalf of individual, dependents or parents and for amounts paid or incurred by an employer on behalf of employees. The credit is limited to the lesser of 15% of premiums or $500. In order for the credit to be available the policy must have been issued prior to January 1, 2000. The credit is not refundable and cannot be carried forward. |
Pennsylvania |
None |
Rhode Island |
None |
South Carolina |
None |
South Dakota |
None |
Tennessee |
None |
Texas |
None |
Utah |
None |
Vermont |
None |
Virginia |
DEDUCTION The amount paid annually in LTC insurance premiums may be deducted from federal adjusted gross income in computing VA taxable income. The deduction is only allowed if the individual did not claim a deduction for these premiums for federal income tax purposes. |
Washington |
None |
West Virginia |
DEDUCTION A deduction is allowed for resident taxpayers for amounts paid during the taxable year for premiums for LTC insurance as defined in the West Virginia Code, for taxpayer, his/her spouse, parent or dependent, from the federal adjusted gross income reported on the West Virginia state tax return. A deduction is allowed on the state level only to the extent the amount is not allowable as a deduction for purposes of determining the taxpayer’s federal adjusted gross income for the year of payment. |
Wisconsin |
DEDUCTION Allows a person to subtract from federal adjusted gross income a portion (generally 100% of the amount paid for the policy minus the amounts deducted from gross income for a LTC insurance policy in the calculation of federal adjusted gross income) of the amount paid for a LTC insurance policy for taxpayer and his spouse when computing Wisconsin taxable income. The deduction is not available on the state level to the extent a deduction was taken for these premiums on the federal return. In addition, the amount claimed as a deduction from LTC insurance in calculation of federal taxable income is excluded from the Wisconsin itemized deductions credit. |
Wyoming |
None |
