Long-Term Care Insurance

Wisconsin law allows individuals to claim a subtraction on the Wisconsin income tax return for the amount paid during the taxable year for a long-term care insurance policy that covers the individual or his or her spouse.

“Long-term care insurance policy” means a disability insurance policy or certificate advertised, marketed, offered, or designed primarily to provide coverage for care that is provided in your home or in an institutional or community-based setting. The care must be convalescent or custodial care or care for a chronic condition or terminal illness.

A worksheet is provided in the Form 1 instructions for computing the subtraction for long-term care insurance.

For federal tax purposes, a portion of the cost of long-term care insurance may be included as a medical expense when itemizing deductions on Schedule A. Medical expenses from Schedule A are generally used in computing the Wisconsin itemized deduction credit. However, if an individual claims the Wisconsin subtraction for long-term care insurance, the portion of the medical expense deduction for long-term care insurance cannot be used in the computation of the Wisconsin itemized deduction credit.

Last updated December 7, 2007