State Tax Incentives for Long-Term Care Insurance

Deduction: Deduction of premiums for long-term care insurance policies covering both nursing-home and home care,and of premiums for policies insuring the taxpayer’s parents or grandparents retroactively to 1997. A taxpayer may not claim both this deduction and the credit below for the same policy.

Mont. Code. Ann. §75-30-721

Credit: Tax credit for “qualified elderly care expenses” (including insurance premiums) made by the taxpayer for a “qualified family member.” The credit is limited to $5,000 per year for a single family member or $10,000 for two or more family members and varies in accordance with the taxpayer’s adjusted gross income. A tax-payer may not claim both this credit and the above deduction for the same policy.

Mont. Code. Ann. §75-30- 728