By Allison Bell
A group of seven lawmakers in Hawaii
are trying to get their state to offer a long-term care insurance (LTCI) purchase tax credit.
The lawmakers have introduced state House Bill 304, a bill that would give state residents with incomes under a designated limit the ability to take a tax credit equal to up to 10 percent of the cost of LTCI premiums
The tax credit would be available to single taxpayers with $100,000 or less in adjusted gross income (AGI) and joint-filing couples with $250,000 or less in AGI.
Taxpayers who found that the tax credit reduced their taxes to less than $1 would not get refunds as a result of the tax credit provision.
A taxpayer could use the credit to reduce taxes for LTCI coverage for a child, parent or step-parent as well for the taxpayer and for the taxpayer's spouse.
Creating incentives for residents to buy LTCI coverage is a smart thing to do, sponsors said in the bill's introductory section.
About 15 percent of Hawaii residents are ages 65 or older, the sponsors said.
"While many of our kupuna live active and healthy lifestyles, the legislature finds that too many Hawaii residents must bear the burden of providing long-term care for their aging loved ones, without any assistance," the sponsors said.
"Long-term care insurance is meant to provide relief to these caregivers by providing services to those who need care as the result of serious trauma or a chronic disease, such as Alzheimer's
or Parkinson's," the sponsors said.
Originally published on LifeHealthPro.com