If you paid premiums for a qualified long-term care insurance policy, you may be eligible for the New York Long-Term Care Insurance Credit (Form IT-249).
This credit is designed to help offset the cost of long-term care insurance by allowing eligible taxpayers to claim a percentage of the premiums they paid during the tax year.
Who Qualifies?
You may qualify for the credit if:
- You paid premiums for a qualified long-term care insurance policy, and
- Your New York Adjusted Gross Income (NYAGI) is less than $250,000.
The income limitation applies to:
- Full-year residents
- Part-year residents
- Nonresidents
How Much Is the Credit?
The credit is equal to:
- 20% of qualified long-term care insurance premiums paid during the tax year
The maximum credit allowed is $1,500 per return.
What Is a Qualified Long-Term Care Insurance Policy?
A qualified long-term care insurance policy generally meets federal and New York requirements for long-term care coverage.
These policies may help cover costs associated with:
- Nursing home care
- Assisted living facilities
- Home health care
- Personal and custodial care services
Premiums paid for policies that do not meet the qualified policy requirements are not eligible for the credit.
Is the Credit Refundable?
The Long-Term Care Insurance Credit is a nonrefundable credit. This means the credit can reduce the amount of New York tax you owe, but it generally cannot increase your refund beyond the tax liability on your return.
How Do I Enter the Long-Term Care Insurance Credit in the Program?
To claim the credit, navigate to:
- State Section
- Edit New York Return
- Credits
- NY Long-Term Care Insurance Credit (IT-249)
Enter the qualifying premium information when prompted. The program will calculate the allowable credit based on the information entered and the applicable income limitations.
Before You Claim the Credit
Be sure to:
- Verify that your policy qualifies as a long-term care insurance policy for New York credit purposes.
- Keep records showing the premiums paid during the tax year.
- Confirm that your New York Adjusted Gross Income is below the $250,000 threshold.
- Review your New York credits summary to ensure Form IT-249 has been generated correctly.
If you qualify, this credit can help reduce your New York income tax liability while helping you plan for future long-term care expenses.
Additional Information