Minnesota Long-Term Care Insurance Credit
The Minnesota Long-Term Care Insurance Credit allows taxpayers to claim a credit based on premiums paid for qualified long-term care insurance policies. This credit is designed to provide tax relief for individuals who have invested in long-term care insurance, helping to offset the cost of premiums.
Eligibility Requirements
- The long-term care insurance policy must qualify as an itemized deduction on Schedule M1SA, Minnesota Itemized Deductions, regardless of income limitations.
- The policy must have a lifetime long-term care benefit limit of $100,000 or more.
- The premiums must have been paid in 2025 for a qualified policy.
- The taxpayer must not have received a full deduction for these premiums on Schedule M1SA.
How to Claim the Credit
To claim the credit, you must complete Schedule M1LTI, which is specifically designed for calculating the Long-Term Care Insurance Credit. This schedule is attached to Form M1, the Minnesota Individual Income Tax Return.
When filing your return using Online Taxes (OLT) software, you can add Schedule M1LTI by navigating to the State section, selecting Credits, and choosing "M1LTI - Credit for Long-Term Care Insurance Premiums Paid." Follow the on-screen instructions to enter your policy and premium information.
Where to Report the Credit
The credit is reported on Line 2 of Schedule M1C, titled "Credit for Long-Term Care Insurance Premiums (Schedule M1LTI)." This line is part of the nonrefundable credits section of your Minnesota tax return.
Important Notes
- This credit is only available if you did not claim a full deduction for the premiums on Schedule M1SA.
- The credit is nonrefundable, meaning it can only reduce your tax liability to zero but cannot result in a refund if it exceeds your tax owed.
- Only premiums paid in 2025 are eligible for this credit.
Source:
Schedule M1LTI - Long-Term Care Insurance Credit
Schedule M1C - Other Nonrefundable Credits
Form M1 Instructions
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions before filing your return.