Minnesota Credit for Long-Term Care Insurance Premiums

Article ID: 33650  

Minnesota Credit for Long-Term Care Insurance Premiums


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:

  1. 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.
  2. 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

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Views: 783 Created on: Jun 15, 2013