Income Tax - Credit for Long-Term Care Premiums (Long-Term Care Relief Act of 2022)
If implemented, this bill will update existing laws that govern tax credits related to long-term care insurance. It specifically increases the maximum credit per eligible individual to the lesser of 20% of the premiums paid during the taxable year or $2,000. This change is intended to incentivize more Maryland residents to invest in long-term care insurance, potentially reducing reliance on state-funded medical assistance programs as individuals seek to cover their long-term care needs privately.
House Bill 62, known as the Long-Term Care Relief Act of 2022, aims to provide financial relief to Maryland taxpayers by altering the eligibility and value of a tax credit for long-term care insurance premiums. The bill allows taxpayers with an adjusted gross income of less than $250,000 to claim a credit against their state income tax for eligible long-term care premiums. This can significantly ease the financial burden on families preparing for long-term care needs and encourage the uptake of long-term care insurance in Maryland.
Though the bill addresses an essential need for long-term care solutions, there may be concerns regarding its fiscal implications. Critics may question the effectiveness of the tax credit in promoting long-term care coverage among taxpayers, given that the credit can only be claimed once per insured individual and cannot be carried over to future tax years. Further, there's a broader conversation about the adequacy of support for long-term care within existing state policies, and stakeholders may debate whether this credit sufficiently addresses those needs.