HF2176

Purpose of the Bill

This bill aims to modify tax credits related to long-term care insurance for individual income tax purposes.

Main Provisions

• The bill amends existing Minnesota tax statutes to expand the long-term care insurance credit available to taxpayers.
• Taxpayers can claim a tax credit for premiums paid on long-term care insurance policies.
• The revised credit structure increases the credit for each policy to 25 percent of the premiums paid, as long as these premiums are not deducted in determining the taxpayer’s net income.
• Taxpayers can only claim credit for one policy per qualified beneficiary.

Significant Changes

• The maximum credit allowed for each beneficiary is increased from $100 to $250.
• For married couples filing joint returns, the maximum total credit per year is increased from $200 to $500.
• For all other filers, the maximum total credit is increased from $100 to $250.

Relevant Terms

long-term care insurance, tax credit, premiums, married couples, joint filings, individual income tax, Minnesota tax statutes