New York Claim for Long-Term Care Insurance Credit
The New York State Department of Taxation and Finance allows eligible taxpayers to claim a credit for long-term care insurance premiums paid. This credit is designed to help individuals offset the cost of long-term care insurance, which is often expensive and not fully covered by traditional health insurance or Medicare.
Eligibility and General Information
- Taxpayers must be residents of New York State.
- The insurance policy must be a qualified long-term care insurance contract under Internal Revenue Code (IRC) § 7702B.
- Shareholders of an S corporation must obtain their share of the credit from the S corporation and report it on their personal income tax return.
- Partnerships, S corporations, estates, and trusts must provide the taxpayer with their share of the credit and relevant certificate information.
How to Claim the Credit
Use Form IT-249 to claim the Long-Term Care Insurance Credit. The form includes instructions for individuals, shareholders of S corporations, and partners in partnerships.
- Individuals: Enter your share of the credit on the appropriate line of Form IT-249.
- S Corporation Shareholders: Obtain your share of the credit from the S corporation and report it on Form IT-249.
- Partnerships: The partnership must provide each partner with their share of the credit. Report this on Form IT-249, Schedule B.
Reporting Requirements
- For partnerships, S corporations, estates, or trusts, complete Schedule B on Form IT-249 to report the name, address, and share of the credit for each entity.
- Submit a statement with your return showing the name, address, and share of the credit allowable for each taxpayer if applicable.
Important Notes
- The credit is based on New York source income and is subject to limitations based on income thresholds and phase-outs.
- Taxpayers must ensure they are reporting only their share of the credit as allocated by the entity (S corporation, partnership, etc.).
- For more information on ordering credits, refer to Article 22 filers’ guidelines in Form DTF-622.
Source:
Form IT-249 Instructions
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions before filing.