30 Mar 2007
For Agents Information Only
New York State's LTC Tax Credit
It's Tax Time -- here is some information your LTCi clients & prospects should have.
It's also a good reason to contact them and talk about LTC and get a quote: http://www.lrcassoc.com/ltc.html
Since we are not tax advisors, you and your clients should contact your own tax advisor. (also see the downloads below).
1. There is NO eligible premium limit. If a forty-eight year old is paying
$10,000 per year for a deluxe benefit, 10 pay policy, he can deduct $2,000
from his NYS Income Tax. If his employer is paying on his behalf, it can
deduct the $2,000 from its franchise tax (see form CT-249). Also, there is
no need to itemize personal deductions. It is added to ITT-210-ATT directly
on line 3. It and other non-refundable credits are then put on line 42 of
the state tax return IT-201.
2. Although the credit is NON-refundable, unused credits can be
carried forward indefinitely.
3. I have attached Form IT-249 and its instructions. No mention anywhere
of "eligible" premium limits; it only mentions "tax qualified premiums", a
definition of which I have also attached from other NYS Tax and Finance
documents.
Download the forms and info here: http://files.lrcassoc.com/NYSLTCTaxCredit/
Have a great weekend.
Todd Concklin
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