LTC insurance: Tax breaks offered by states

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in Small Business Tax,Small Business Tax Deduction Strategies

Most states allow you to take a tax deduction or credit for buying long-term care insurance. Here’s a breakdown of those tax breaks, according to an AARP analysis:

State tax credit or deduction more generous than federal deduction: Alabama, Arizona, Colorado, Idaho, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Minnesota, Missouri, Montana, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Utah, Virginia, West Virginia and Wisconsin.

State tax deduction same as federal: Arkansas, California, Delaware, D.C., Georgia, Hawaii, Kansas, Massachusetts, Mississippi, Nebraska, Oklahoma, Rhode Island, South Carolina, Vermont.

No state tax incentives: Connecticut, Louisiana, Michigan and Pennsylvania.

No broad-based state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

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