My LTC policy started 8/2013. I claimed 15% of premium in 2013 VA return - none since. Can I claim the remaining 85% of the 2013 premium in my 2018 VA State return?

[Cindy0H · Accepted solution]

I think you are referring to the Long Term Care Credit. Virginia's instructions are vague. If you have "carryover credits", those would be allowed. This is what I found:

Long-Term Care Insurance Tax Credit

This credit expired December 31, 2013, and no credits may be claimed for taxable years beginning after that date. Only carryover credits from prior years are allowed. 

For more information, contact: Virginia Department of Taxation, Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-0715, or call (804) 786-2992.

There is also a deduction for the Long Term Care premiums but this is for premiums paid in the year 2018.

[skipick7]

Thanks Cindy.  I gave them a call at the number you provided and learned that the credit was limited to 15% of the first 12 months premium. So, I had nothing left to carry over.  Too bad!  I appreciate you taking the time to respond and providing the number to call.

[Cindy0H]

You are welcome. It is nice to be appreciated!

[30689]

Yes, extremely vague. I purchased my LTC plan in Aug 2012.

1. Should the 'carryover' amount I enter be the premiums I paid in 2012 and 2013? 

2. Does the carryover only apply to premiums paid in 2011-2013?

3. I'll have to go back and see when I started recording my yearly premiums in my VA state taxes. It seems it has only been in the last 3-4 years.

Any help on this would be greatly appreciated.   

[DawnC]

This credit expired on December 31, 2013.

Individuals may claim a credit equal to 15% of the amount paid by the individual during the taxable year in long-term care insurance premiums for long-term care insurance coverage for himself, but the total credits for any policy may not exceed 15% of the amount of premiums paid for the first 12 months of coverage.

Any unused credit may be carried forward for the next 5 taxable years.  In order to determine the amount that may be used as a basis for this credit, the individual must subtract any amount actually included as a deduction on Schedule A of the individual's federal income tax return.  In addition, the individual may not claim this credit to the extent the premiums have been used to claim the Virginia deduction for long-term healthcare premiums.  It may be possible, however, for an individual to claim this credit and the Virginia deduction in the same year.

Example

@30689  

Contact Virginia Tax