You may claim this tax credit if you purchase insurance to provide long-term care coverage for yourself or your spouse, such as nursing home coverage.
To be eligible for the Long-Term Care Insurance Credit, both of the following must be true:
- The policy you purchased qualifies as a federal deduction (disregarding the 7.5 or 10 percent income test). For more information, view IRS Publication 502, Medical and Dental Expenses.
- The policy has a lifetime benefit limit of $100,000 or more.
The credit amount is equal to 25 percent of the policy premium(s), up to $100 per beneficiary. For married couples, one policy covering both spouses will be eligible for the $200 maximum credit; separate policies or premiums are not required. View the statute (M.S. 290.0672) .
To claim the credit, complete the following forms and include them with your Minnesota income tax return:
Schedule M1LTI, Long-Term Care Insurance Credit
Schedule M1C, Other Nonrefundable Credit