How do I claim credit for my New York State Health Care Facility Cash Assessment when using Turbo Tax

[NicoleU]

You are entitled to this refundable credit if you:

Paid the nursing home assessment imposed on a New York State nursing home. You can find the amount of this assessment on the billing statement or other statements provided to a resident by the nursing home. The assessment amount is not the amount of expenses paid.

• You can claim the credit only if you actually paid the assessment. For example, you may claim the credit if your mother is a nursing home resident and you paid the assessment on her behalf. If your mother paid the assessment, only she can claim the credit.
• If you are a nursing home resident and assign your long-term insurance benefits to the nursing home, you may claim a credit for the amount of those insurance benefits that represent the assessment payment.
• You cannot claim the credit for any part of the assessment paid directly to the nursing home by a health insurance policy, with public funds (such as, Medicaid or Medicare), or paid by a trust or other entity.

How much is the credit?

• The credit is equal to the 6% base-rate portion of the assessment (not the amount of expenses paid) that you directly paid during the year.

This credit would be claimed on Form IT-258 Claim for Nursing Home Assessment Credit

In TurboTax, please see the following:

• Click State Taxes
• You will follow a couple of prompts until you see this page: Take a look at New York credits and taxes
• Your Home section
• Nursing Home Assessment Paid with Your Own Funds, click Start

[gaga542]

How do I claim this credit using Turbo Tax 2020 CD windows version. Do not see that form any where.

Also, my mother has no tax liability due to her high nursing home expenses. Is she still entitled to receive a refund of this tax?

[ErnieS0]

The New York Claim for Nursing Home Assessment Credit (Form IT-258) is available in Turbotax CD\Desktop.

• In New York, go to Take a look at New York credits and taxes
• Scroll down to Your Home
• Start Nursing Home Assessment Paid with Your Own Funds
• Enter your information

The Claim for Nursing Home Assessment Credit is refundable, meaning it will be added to your mother’s refund even if no tax is due.

New York allows a credit for the amount of the assessment imposed on a New York residential health care facility and paid directly by an individual. The assessment must be separately stated and accounted for on the billing statements or other statements of a resident of a residential health care facility, and must be paid directly by the individual taxpayer claiming the credit.

Related Resource:

• Claim for Nursing Home Assessment Credit

[gaga542]

This capability does not exist in Turbo Tax 2020 Desktop, Please take a look. I have seen these instruction before and it is not there.

[ErnieS0]

I am using TurboTax CD\Desktop. The screen for Form IT-258 is there.

If you are not seeing them, try updating your software. Click Online in the upper left, then Check for Updates. Or speak live with one of our Enrolled Agents, CPAs or Tax Attorneys.

[gaga542]

Thanks you. I finally found it. Not sure how I missed it. Thank you.

One more question. I need to amend last years return with this credit. What do I need to do to change this one item and file for a return?

Thanks again

[LenaH]

I have attached the instructions below if you need to amend your mother's 2019 tax return to include the Claim for Nursing Home Assessment Credit. 

How do I amend my 2019 return in the TurboTax CD/Download software?

After you elect to amend, you would follow the instructions as illustrated by ErnieS0 that was posted above. The 2019 credit would be on the same screen, Take a Look at New York Credits and Taxes. 

@gaga542

[gaga542]

Thanks. I completed the amendment and was trying to efile but TurboTax said NYS was not accepting efiled amendments until early February. It is now March 2.  Do you know what the status is? 

[CarissaM]

It should be available to e-file currently. 

Please update the software if you are using the desktop version and then try to submit once more. 

If you have additional issues, please click here to contact customer support. 

[robs462]

@ErnieS0 @NicoleU , came across your thorough responses on this subject.  Since you can claim for reimbursement of the Cash Receipts Assessment (CRA) on the NYS tax return, I assume that the CRA amount can NOT be included as part of the nursing home facility’s room & board fee when itemizing medical expenses on Federal Schedule A.  Is that correct?
Note: From what I’ve found, the current maximum CRA reimbursement is 6% of the 6.8% charged in 2024.  

[BrittanyS]

No, you could not claim reimbursements on the itemized deductions.  According to the IRS, "you can't include medical expenses paid by insurance companies or other sources."  Therefore, if you receive CRA reimbursements, you must exclude these from the medical expenses entered in your itemized deductions.  

See the link below for more information:

• Publication 502

@robs462