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IT-249-I

New York State Department of Taxation and Finance

Instructions for Form IT-249

Claim for Long-Term Care Insurance Credit

Temporary deferral of certain tax credits

This credit is not refundable. If the amount of credit exceeds

the taxpayer’s tax for the year, the excess may be carried

For tax years beginning on or after January 1, 2010, and

over to the following year or years.

before January 1, 2013, if the total amount of certain credits

that you may use to reduce your tax or have refunded to you

Who is eligible to claim this credit?

is greater than $2 million, the excess over $2 million must

— individuals

be deferred to, and used or refunded in, tax years beginning

on or after January 1, 2013. For more information about the

— estates or trusts

credit deferral, see Form IT-500, Income Tax Credit Deferral.

— partners in a partnership (including members of an LLC

treated as a partnership for federal income tax purposes)

If you are subject to the credit deferral, you must complete

all credit forms without regard to the deferral. However,

— shareholders of a New York S corporation

the credit amount that is transferred to your tax return to

— beneficiaries of an estate or trust

be applied against your tax due or to be refunded to you

may be reduced. Follow the instructions for Form IT-500 to

Line instructions

determine the amounts to enter on your tax return.

See the instructions for your tax return for the Privacy

notification or if you need help contacting the Tax Department.

General information

Taxpayers who pay premiums for qualified long-term care

Partners in a partnership, New York S corporation

insurance may claim a credit against their personal income

shareholders, and beneficiaries of an estate or trust:

tax. The credit is equal to 20% of the premiums paid during

Complete Schedule B, Schedule C, Schedule E, and

the tax year for the purchase of or for continuing coverage

Schedule F (full-year residents), or Schedule G (nonresidents

under a qualifying long-term care insurance policy.

and part-year residents), and Schedule H.

Individuals (including sole proprietors): Complete

A qualifying long-term care insurance policy is one that

Schedule A, Schedule E, and Schedule F (full-year

— is approved by the New York State Superintendent of

residents), or Schedule G (nonresidents and part-year

Insurance under Insurance Law section 1117 (g); and

residents), and Schedule H.

— is a qualified long-term care insurance contract under

Partnerships: Complete Schedule A and Schedule E.

Internal Revenue Code (IRC) section 7702B. (Note that

section 7702B relates to policies for which a federal

A married couple in a business enterprise that made

itemized deduction is allowed.)

an IRC 761(f) election to file two federal Schedule C

forms instead of a partnership return: If you file jointly,

— is a group contract delivered or issued for delivery outside

compute your credit amount as if you were filing one federal

New York State; and

Schedule C for the business (enter the total of all applicable

amounts from both federal Schedule C forms). Complete

— the group contract is a qualified long-term care insurance

Schedule A, Schedule E, and Schedule F (full-year residents)

contract under IRC section 7702B. The premiums paid

or Schedule G (nonresidents and part-year residents), and

for this insurance qualify for the credit even if the policy

Schedule H.

is not approved by the New York State Superintendent of

Insurance.

Fiduciaries: Complete Schedule A, Schedule D, Schedule E,

and Schedule F (full-year residents) or Schedule G

A qualified long-term care insurance contract under

(nonresidents and part-year residents), and Schedule H.

IRC section 7702B is an insurance contract that provides

only coverage of qualified long-term care services. The

Note: If more than one of the above applies to you,

contract must

complete all appropriate schedules on one Form IT-249.

1. be guaranteed renewable;

Schedule A — Individuals (including sole

2. not provide for cash surrender value or other money that

proprietors), partnerships, and fiduciaries

can be paid, assigned, pledged, or borrowed;

Line 1 — Enter the amount of premiums paid during the year

3. provide that refunds, other than refunds on the death

for qualified long-term care insurance.

of the insured or complete surrender or cancellation of

the contract, and dividends under the contract must be

Include on line 1

used only to reduce future premiums or increase future

— any premiums you paid as an individual for qualified

benefits; and

long-term care insurance, and

4. generally not pay or reimburse expenses incurred for

— any premiums you paid for qualified long-term care

services or items that would be reimbursed under

insurance as an employer for an employer-sponsored

Medicare, except where Medicare is a secondary

health insurance plan and the premiums were not

payer, or the contract makes per diem or other periodic

included in box 1 of your employees’ federal Forms W-2.

payments without regard to expenses.

The insurance company that issued your policy

should be able to tell you if the policy qualifies under

IRC section 7702B.

Form It-249-I - 2011 - Instructions For Form It-249 - Claim For Long-Term Care Insurance Credit

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