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


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
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.


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