SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

2005 SESSION

  • | print version

HB 1214 Income tax, state; credit for purchase of long-term care insurance.

Introduced by: R. Steven Landes | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Individual income taxes; credit for purchase of long-term care insurance. Provides a credit against individual income taxes for certain long-term care insurance premiums paid by individuals during the taxable year and sunsets the current individual income tax deduction for long-term care insurance premiums.

An individual at least 55 years old, or an individual purchasing long-term care insurance for a Virginia resident at least 55 years old, is eligible for an individual income tax credit for insurance premiums paid by the individual for long-term care insurance coverage of Virginia residents at least 55 years old. If the long-term care insurance coverage is for a person at least 65 years old, the tax credit is the lesser of the individual's income tax liability or the actual premiums paid in the taxable year. If the long-term care insurance coverage is for a person at least 55 but less than 65 years old, the tax credit is the lesser of (i) the actual premiums paid in the taxable year, (ii) $1,000, or (iii) the individual's income tax liability for the taxable year.

The credit would be available beginning with the 2004 taxable year. To claim the credit, the individual shall attach to his individual income tax return proof of payment for such premiums, as determined by guidelines established by the Tax Commissioner.

The bill amends sunsets the current tax deduction for long-term care insurance effective January 1, 2004. Individuals itemizing long-term care insurance premiums for insurance coverage on a resident individual of the Commonwealth at least 55 years old are not eligible for the tax credit.


FULL TEXT

HISTORY