Virginia allows a deduction for long term care insurance as long as it was not actually used as a deduction on the federal return. Since my federal return used the standard deduction, can I use the long term care insurance as a deduction on my state

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PattiF

Alumni - Intuit

Yes, you can use the long term care insurance as a deduction on your state return. You did not claim a federal income tax deduction for this.

From the Virginia Tax site:

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DD1012

Level 2

I have a related question. If medical expenses are itemized for federal taxes, but the payment for long term care premium was less than 7½% of Federal AGI, is it allowable to claim the long-term care premium deduction on VA form 760, on the basis that the premium was not actually deducted on federal taxes? (It was counted in that part of medical expenses that is not deductible, namely the part below 7½%). Medical expenses are not being itemize for VA 760 as the threshold for expenses is 10%.

Thank you

AmyC

Alumni - Intuit

No, Va says: The Virginia deduction for long-term health care insurance premiums is completely disallowed if you claimed a federal income tax deduction of any amount for long-term health care insurance premiums paid during the taxable year.

The LTC premiums on federal were a part of the medical amounts to create the amount that was allowed as a medical deduction. You would have had a lower deduction without the LTC.

If you want to remove the LTC from federal, then you can claim the VA deduction.

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