Idaho Long-Term Care Insurance

Idaho Long-Term Care Insurance Deduction

Idaho allows taxpayers to claim a deduction for qualified long-term care insurance premiums on their state tax return, provided they meet specific criteria. This deduction is available on Form 39NR, Line 19, and is calculated based on the federal deduction claimed on Form 1040 or 1040-SR, Schedule A.

Eligibility and Calculation

• Taxpayers must have paid premiums for qualified long-term care insurance.
• The deduction is only allowed for premiums not already deducted or accounted for on the federal return.
• If a deduction was claimed on the federal return, Idaho requires using a worksheet to calculate the allowable state deduction.

Worksheet Instructions

To calculate the Idaho long-term care insurance deduction, follow these steps:

1. Enter the total long-term care insurance premiums paid (Line 11).
2. Subtract any health insurance premiums deducted on federal Schedule A (Line 12).
3. Enter the portion of long-term care insurance deduction allowed on federal Form 1040 or 1040-SR, Schedule A (Line 13).
4. Enter the total long-term care insurance costs deducted elsewhere on the federal return (Line 14).
5. Calculate the allowable Idaho deduction by subtracting Lines 13 and 14 from Line 11 (Line 15).

Column B Calculation

For Column B on Form 39NR, use the following steps:

1. Enter total Idaho income from Form 43, VIM 20 (Line 1).
2. Enter total income from federal Form 1040 or 1040-SR, Line 9 (Line 2).
3. Divide Line 1 by Line 2 (Line 3). This percentage cannot exceed 100%.
4. Enter the amount from Form 39NR, Line 18, Column A (Line 4).
5. Multiply Line 4 by Line 3 to get the allowable Idaho deduction (Line 5).

Important Notes

• The worksheet prioritizes itemized deductions first to health insurance premiums and then to long-term care insurance.
• The deduction is subject to federal and state income thresholds and phase-out rules.
• Taxpayers must ensure they are not double-deducting premiums already claimed on the federal return.

Source:

Individual Income Tax guidelines

Form 39NR

Disclaimer: Always verify with Federal or State Department of Revenue Forms and Instructions for the most accurate and up-to-date information.