Long Term Care Premium Deduction

[447debbie]

I am a resident of Illinois with rental property in Wisconsin.  I have to file Wisconsin 1NPR as a non-resident.  I understand that as a Wisconsin non-resident, and using 1NPR form, I should be able to takes a deduction on my Wisconsin form for Long Term Care Premiums.  I do not see anything in Turbo Tax Premier Windows Version, that allows me to enter this.  Where is that?

Turbo Tax Premier Window Version

[AmyC]

The allowable portion goes on the screen labelled "Here's the income that WI handles differently." The first selection in the medical group is where you add the allowable amount. You should click on the Learn More link for additional help.

WI taxes only your WI income. As a non-resident, page 29 of Form 1NPR Instructions states:

The following describes the portion of these items that may not be used to compute the Wisconsin itemized deduction credit. 

• Medical expenses – the amount of medical care insurance and long-term care insurance claimed as a subtraction for Wisconsin. If this applies to you, complete the worksheet on the next page to figure the amount which you are allowed, if any, for purposes of the itemized deduction credit.

[447debbie · Accepted solution]

WI taxes only your WI income.  PERHAPS. BUT LOOK AT HOW THEY DO THAT.  THEY TAKE INTO CONSIDERATION HOW MUCH YOUR FEDERAL INCOME IS THAT CARRIES OVER TO YOUR WISCONSIN 1NPR FORM.  THAT IS WHERE YOU MUST GET IT REDUCED.  I am not asking how to add it to my Wisconsin form as a Wisconsin itemized deduction credit.  You know, Turbo Tax should automatically direct you through these screens when it sees you have other states that allow this.  Turbo Tax expects that you know you can do that, because who would bother to fill out a Schedule A if you don't have enough to itemize.  How is one supposed to know that WI, as non-resident, will take what is on Schedule A, and apply it to the WI taxes if WI allows is.  Like in this case, it will reduce the amount of Federal Income that WI looks at when calculating my WI taxes.
  
Wisconsin uses your federal income to determine the WI tax percentage.  Thus, you can deduct the Long Term Care Premium amount from the federal income that is used in the WI calculation for your WI taxes.  Thus, somewhere you can indeed deduct the Long Term Care Premium.  You can also deduct your medical expenses from that federal income amount.  

Anyway I found the answer.  Go to Help, type in Schedule A, go to Jump to, go thru all the questions and eventually you will get to the screen asking you to enter your Long Term Care Premiums and also your medical expenses.  You just have to ignore the part when it asks you if have medical expenses greater than some ridiculous $xx,xxx amount.  

See Line 39 instructions for 1NPR.

[RJ05]

I have input my long term care premium I paid of $50 K in the Federal itemized section, even though I am taking the standard deduction, and I also tried entering in the CO state section.   The CO state will not give me the $150 credit for it, and my AGI is way below the limit, my age is allowable....   I tried not entering in FED and only  in the State section, but still it will not accept...

[AmyC]

CO does have a credit for LTC up to $150. You seem familiar with the rules listed here. You knew to add the long term care in the CO return. It shows on Form 104CR on line 33. Your total credits carry to line 15 of Form 104 and are nonrefundable, so the number can't be greater than your tax liability.

Take a look at your forms and see if the credit is being disallowed or limited. To see your forms:

• In desktop, switch to Forms Mode. 
• For online, see How do I preview my TurboTax Online return before filing?

@RJ05

[RJ05]

Your point that they aren't refundable and my state tax liability is negative, explains why I don't receive a credit for LT care premium.  Thank you.