Important: The Indiana Partnership policy will have the following information on the outline of coverage, the application, or on the front page of the policy:

If the information shown below is not located in a box on your policy, you do not have a qualifying policy, and are not eligible to take this deduction.

"This policy qualifies under the Indiana Long-Term Care program for Medicaid Asset Protection. This policy may provide benefits in excess of the asset protection provided in the Indiana Long-Term Care program."

The deduction is the amount of premiums paid during the year on the policy for the taxpayer and/or spouse.

No Double Benefit Allowed
Certain self-employed individuals will claim these premiums as a deduction on the front page of federal Form 1040. The Indiana deduction will be the actual amount of these premiums paid minus any amount of these already reported on federal Form 1040.

Example: Sam paid $645 in Indiana Partnership long term care premiums. He deducted $400 of those premiums on the front page of Form 1040. He'll be able to deduct the $245 difference ($645 -$ 400) here.

More information about the Indiana Long-Term Care Program is available at the following web site: www.in.gov/fssa/iltcp/

Important: Keep a copy of the premium statements as the Department can require you to provide this information.

Back