Long-Term Care Insurance Credit

If you purchase a long-term care insurance contract for yourself or certain members of your family, you may be eligible for a credit of up to $500 for each insured.

Qualifications

To qualify for the credit, the insured must be all of the following:

• A spouse, parent, stepparent, child or stepchild.
• A Maryland resident.
• Not covered by long-term care insurance before July 1, 2000.

For tax year 2007, you can claim a credit equal to the premiums paid, up to a maximum of $290 for each insured person 40 years of age or younger, and up to a maximum of $500 for each insured person 41 or older.

This tax credit must not have been claimed for the insured by you or anyone else in any other tax year. If the credit exceeds the tax liability, the unused credit may not be carried forward to any other tax year.

Claiming the credit

To claim the credit, you must file Maryland Form 502, 505 or 515. The credit cannot be claimed on any short form 503. Complete Part E of Form 502CR and include Form 502CR with your return.