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Indiana Partnership Long Term Care Policy Premiums Deduction

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Question
Indiana Partnership Long Term Care Policy Premiums Deduction

Answer
You may take a deduction for the amount of premiums paid for Indiana partnership long-term care insurance.
Important: The Indiana partnership policy will have the following box of information on the outline of coverage, the application or on the front page of the policy:
 
This policy qualifies under the Indiana Long-Term Care program for Medicaid Asset Protection. This policy may provide benefits in excess of the asset protection provided in the Indiana Long-Term Care program.
If the information shown in the box above is not located in a box on your policy, you do not have a qualifying policy, and are not eligible to take this deduction.
The deduction is the amount of premiums paid during the year on the policy for the taxpayer and/or spouse.
No double benefit allowed. Certain self-employed individuals will claim these premiums as a deduction on the front page of federal Form 1040. The Indiana deduction will be the actual amount of these premiums paid, minus any amount of these already reported on federal Form 1040.
Example. Sam paid $645 in Indiana partnership long-term care premiums. He deducted $400 of those premiums on the front page of Form 1040. He should deduct the $245 difference ($645 - $400) on Indiana Schedule 2 under line 11.
More information about this program is available at the following Web site www.in.gov/fssa/iltcp
Important: Keep a copy of the premium statements as the Department can require you to provide this information.

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Article Details
Views: 608 Created on: Jun 15, 2013
Date updated: Aug 17, 2015
Posted in: STATES, Indiana

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