Credits related to elder care
Long-term care insurance credit
Who is eligible?
You're entitled to this nonrefundable credit if you or your business pay premiums for qualifying long-term care insurance policies.
How much is the credit?
The allowable credit is 20% of the premiums paid during the tax year for the purchase of, or for continuing coverage under a qualifying long-term care insurance policy.
However, for tax years beginning on or after January 1, 2020, the credit is only allowed for taxpayers with New York adjusted gross income (NYAGI) less than $250,000 and cannot exceed $1,500.
What form do I use?
- Form CT-249, Claim for Long-Term Care Insurance Credit (for corporations)
- Form IT-249, Claim for Long-Term Care Insurance Credit, and its instructions (for all others)
Nursing home assessment credit
Who is eligible?
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 actually paid the assessment yourself. 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.
- You are a nursing home resident and assign your long-term insurance benefits to the nursing home; in that case, 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 that you directly paid during the year. It is not the amount of total care expenses paid during the year.
Example: During the tax year, you paid a total of $106,800 for nursing home care including $100,000 for total care expenses and $6,800 for New York State assessment. The amount of the credit allowed would be $6,000 ($100,000 total care expenses X .06). Although the New York assessment rate fluctuates, the credit is limited to 6% of the total care expenses.
What form do I file?
Compete and submit Form IT-258, Claim for Nursing Home Assessment Credit, with your return.
