If you purchase a long-term care insurance contract for yourself or certain members of your family, you may be eligible for a one-time credit of up to $500 for each insured.
Qualifications
To qualify for the credit, the insured must be all of the following:
- A spouse, parent, stepparent, child or stepchild.
- A Maryland resident.
- Not covered by long-term care insurance before July 1, 2000.
- Not claimed the credit for the insured by another taxpayer this year.
- Not claimed the credit for the insured by anyone in any other tax year.
For the current tax year, you can claim a credit equal to the premiums paid, up to a maximum of $350 for each insured person 40 years of age or younger, and up to a maximum of $500 for each insured person 41 or older.
This tax credit must not have been claimed for the insured by another taxpayer in this year or anyone else in any other tax year. If the credit exceeds the tax liability, the unused credit may not be carried forward to any other tax year.
Claiming the credit
To claim the credit, you must complete Part E of Form 502CR, and attach it with your Maryland Income Tax Return (Form 502, 505 or 515). The credit cannot be claimed on any short form 503.