How do I qualify for the Partnership Plan Long-term Care Insurance Credit?

You're allowed a North Dakota tax credit for premiums you pay for a partnership plan long-term care insurance policy that covers you or your spouse, or both. To qualify, you must be a North Dakota resident at the time you pay the premiums.

A partnership plan policy is a special type of long-term care insurance policy that:

• meets specific consumer protection and federal income tax law requirements,
• is recognized by North Dakota for Medicaid benefit purposes, and
• provides the proper inflation protection based on the insured individual's age at time of purchase.

An insurance company is required to provide you with a statement certifying the policy as a partnership plan policy at time of issuance. If you are filing a paper return, attach copies of the certification statement and the first page of the policy which identifies the insurance company and the name(s) of the insured. If you are electronically filing your return, you must be able to provide these copies upon request by the Office of State Tax Commissioner.

Important: There are long-term care insurance policies that ARE NOT partnership plan policies for which the premiums are not eligible for this credit. Therefore, you must look for the certification statement in your policy, or contact your insurance company or the North Dakota Insurance Department for assistance to verify your policy's eligibility.

The credit is equal to the premiums you paid during the tax year, up to a maximum credit of $250 (or $500, if both you and your spouse are insured by the policy).