New York State Tax Credit
New York State allows favorable state tax treatment of premiums paid for policies which qualify under the federal law and meet New York minimum standards. Long term care premium tax credit legislation was passed in 2000 and took effect in taxable years beginning in 2002.
Additional legislation was passed increasing the tax credit for long term care insurance premiums from 10% to 20% for taxable years beginning in 2004. Any qualified policy covering long term care services that was approved in New York and issued before January 1, 1997, also qualifies for favorable tax treatment with certain limited exceptions.
A qualified long-term care insurance policy is one that is:
approved by the New York State Superintendent of Financial Services under section 1117(g) of the Insurance Law; and
a qualified long-term care insurance contract under section 7702B of the Internal Revenue Code (IRC). (Note that section 7702B relates to policies for which a federal itemized deduction is allowed.)
or
is a group contract delivered or issued for delivery outside New York State; and
the group contract is qualified long-term care insurance contact under section 7702B of the IRC. The premiums paid for this insurance qualify for the credit even if the policy is not approved by the New York State Superintendent of Financial Services.
You should consult with an attorney, accountant or tax advisor regarding the tax implications of purchasing a tax-qualified policy.
Remember, not all long term care policies qualify for favorable tax treatment. Insurers who market tax-qualified policies may also market non-tax-qualified policies. This information can be obtained by contacting the insurance carrier.
For information about claiming this tax credit, see here: https://www.dfs.ny.gov/consumer/ltc/ltc_general_tax_savings.htm
