Taxpayers who pay premiums for qualified long-term care insurance may claim a credit against their personal income tax. The credit is equal to 20% of the premiums paid during the tax year for the purchase of or for continuing coverage under a qualifying long-term care insurance policy.
A qualifying long-term care insurance policy is one that
A qualified long-term care insurance contract under IRC section 7702B is an insurance contract that provides only coverage of qualified long‑term care services. The contract must
The insurance company that issued your policy should be able to tell you if the policy qualifies under IRC section 7702B.
This credit is not refundable. If the amount of credit exceeds the taxpayer’s tax for the year, the excess may be carried over to the following year or years.
Who is eligible to claim this credit?
Form IT 249 Instructions