Virginia Senate Bill 786 was signed into law by the Governor and will take effect on July 1, 2006. The new law amends the state's tax code to provide a credit against individual income taxes for LTC insurance premiums paid on or after January 1, 2006. The amount of the credit for each taxable year equals 15% of the amount paid by the individual in LTC insurance premiums and is not to exceed over the life of any policy 15% of the amount of premiums paid for the first 12 months of coverage. If the credit exceeds the individual's income tax liability for the tax year, the excess amount can be carried over for credit against the income taxes of the individual for the next five years or until the credit is used, whichever comes first.
To claim the credit, the individual must attach to his individual income tax return proof of payment for the LTC insurance premiums.
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Emphasis Mine
Now, is it just me, or does it say that all you'll ever get is 15% of the first year's premium? If you take the full credit the first year, you don't get any more credits. Am I missing something?
2 comments:
here's the way i read it..say your premium the 1st year was $100. you can deduct $15. If your premium goes up the next year, you can only deduct $15 the next year, as you can only deduct 15 percent of what the premium was the 1st year. But i maybe reading it wrong. Still praying for your back.
Well, that certainly makes more sense, doesn't it? LOL
Maybe I had too many mind-altering substances coursing through my veins!
Thanks for the prayers for my back. The high dose steroids seem to be doing the trick. I'm feeling tons better today!
Thanks for setting me straight!
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