NY State Long Term Care premium not being deducted from my return.

[DrdeathAB]

I entered my Long Term Care premiums and received no deduction on my NY State IT-201.  I am under the NYS AGI limit so I don't understand why TurboTax is not applying the deduction.  TurboTax has applied the deduction every previous year.  I am wonder if this is a TurboTax logic error or is there something I am missing (but I have checked the NYS website on this).  Help.

[ErnieS0]

Did you have enough income?

The New York Long-Term Care Insurance Credit is a non-refundable credit. It can only bring your NY tax liability to $0.

If your New York State Household Credit and Resident Credit are large enough to bring your NY tax liability to $0 before application of the LTC Credit, then the LTC Credit will not show up on your return.

TurboTax will automatically transfer the appropriate long-term insurance premium payment you entered as federal medical expenses onto the New York return.

Check your forms. Do you have Form IT-249, Credit for Long-Term Care Insurance Credit? If so, it means TurboTax transferred the number, but it was not used.

Related Resource:

• Long-term care insurance credit

[DrdeathAB]

Thanks for the response but my NYS tax is much higher than $0.  The reason I think there is a TurboTax logic error is that my Federal AGI is above the NYS $250k but my NY AGI is below the NYS $250k threshold. And it should be based on my NY AGI according to the NYS tax website. 

any thoughts on how to proceed?

[sca154]

I have the same issue - my Federal AGI is above $250K but my NYS - AGI is below $250K and I have a NYS tax liability and yet the credit is not being recognized

[sca154]

My Federal AGI is above $250K but my NYS - AGI is below $250K and I have a NYS tax liability and yet the credit is not being recognized

[LenaH]

For tax years starting on or after January 1, 2020, the current year long term care credit is limited to $1,500. In addition, you must answer questions on your New York Return before this credit is on your state return.

Please follow the instructions below:

1. Open your return.
2. Click on State.
3. Edit New York.
4. On the page titled Take a look at New York Credits and Taxes, select Start next to Long Term Care Insurance Premiums Paid in 2020.
5. Answer the question on whether you were a partner in a partnership, shareholder of a S Corp or beneficiary of an estate or trust.
6. On your New York State Tax Summary, you should see a maximum deduction of $1,500 listed under Nonrefundable Credits.

@sca154

@DrdeathAB

[holktax]

My New York IT-249 shows all of the data for deduction for long-term care insurance premium but on Line 15 it inserts as "0" which is correct if my NYAGI is > 250K but my NYAGI is <250K so it will not populate a credit on Form ATT.   I have tax liability that can be offset by the credit. 

I see that others have asked the same question.  The answer below brings you to place to fill in information about which partnership the LTC premium was paid through, but my LTC premium was not paid through a partnership it was paid directly by me.

How do I get the credit to populate?

[apowers00]

It looks like NY state changed the law from 2019 to 2020. I too was getting a credit for 2019 and all years prior. In doing my current 2021 taxes, I noticed that I was not getting the credit. I was able to get to the form in Turbotax It-249. There is a question in section F about whether income is greater than 250,000 in which case the credit drops to 0 without a phaseout. This is a new question that started in 2020. It was not there on the 2019 form. https://www.tax.ny.gov/pdf/2019/inc/it249_2019_fill_in.pdf

So no more credit for those with income above $250,000