Maryland Employer Provided Long-Term Care Insurance Credit
The Maryland Employer Provided Long-Term Care Insurance Credit is designed to support employers who offer long-term care insurance as part of their employee benefit packages. This credit is available to businesses that pay premiums for long-term care insurance for their employees in Maryland.
Eligibility and Calculation
- Line 1 (Part I): Enter 5% of the long-term care insurance premiums paid as part of an employee benefit package.
- Line 2 (Part I): Enter the number of employees within Maryland covered under the employee benefit package. Multiply this number by $100 to determine the credit amount.
- Line 3 (Part I): Enter the lesser of the amounts from Line 1 or Line 2.
- Line 4 (Part I): Enter the lesser of Line 3 or $5,000. This is the final credit amount allowed.
Reporting Requirements
Employers must report this credit on Form 500CR, which is attached to the appropriate Maryland business income tax return (such as Form 500, 502, 505, 510, or 511). The credit is calculated based on the number of employees and the premiums paid, with a maximum credit of $5,000 per return.
Important Notes
- The credit is limited to $5,000 per return.
- Only premiums paid for employees located in Maryland are eligible.
- The credit must be claimed on Form 500CR, Part I, and is subject to specific reporting instructions.
Source:
Form 500CR - Business Income Tax Credits
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.