1040-IN: Long-term care policy premiums deduction

Alerts and notices

The Indiana Long-Term Care Policy Premiums Deduction Worksheet calculates the Schedule 2 or C deduction for the portion of long-term care premiums paid by the taxpayer that are not deductible on federal Form 1040.

Any long-term care policy premiums you enter at the federal level are treated as qualifying premiums when calculating the deduction. To force qualifying amounts on the worksheet, use the applicable Qualifying LTC policy premiums field(s) on the INAdj screen in the Income & Adjustments folder.

To force the deduction claimed on Schedule 2 or Schedule C and suppress the calculation on the Indiana Long-Term Care Policy Premium Deduction Worksheet, enter an amount in the Indiana LTC policy premiums deduction (Force) field on the INAdj screen in the Income & Adjustments folder. If the taxpayer and spouse are taxed in different counties, enter the applicable deduction amounts in the Taxpayer and Spouse fields. Otherwise, if you are forcing the deduction, enter an amount only in the taxpayer field. 

Note: The formal name of this deduction is the "Indiana Partnership Long-Term Care Policy Premiums Deduction". However, the term "partnership" as used here by Indiana does not refer to a pass-through entity. This deduction can be taken based on premiums paid via sole proprietor activities as well as premiums paid via pass-through (Schedule K-1) activities.