Are there long-term care insurance tax incentives on a state-by-state basis?
A. Broadly speaking, the answer is yes, although these incentives differ. For example, Colorado residents may be granted a credit equaling 25 percent of the premiums paid (or $150) per long-term care policy, whereas California residents may deduct the total cost of long-term care insurance premiums paid in a given tax year. The National Association of Insurance Commissioners advises soliciting information on the tax implications of long-term care insurance from state insurance departments.
