by Rich Schlueter

As tax season approaches, like most people you are likely looking for additional deductions, credits, etc., in an effort to reduce your income tax liability. One item that is often overlooked is the Minnesota long-term care tax credit. Tax preparers are often guilty of missing this deduction as well because they are unaware of it or mistakenly assume you don’t have a long-term care policy.
 
Minnesota offers an income tax credit of up to $100 if you paid premiums on a qualifying long-term care policy in the given tax year. The credit can be as much as $200 if both spouses are insured. The credit is equal to 25% of your premium paid up to a maximum of $100 per insured.
 
To take advantage of the credit you need to file Minnesota Revenue schedule M1LTI.

You should also know that medical and dental expenses that exceed 7.5% of adjusted gross income are deductible and taxpayers can include eligible long-term care premiums as part of their medical expenses. The following limits apply for the 2007 tax year.

You should contact your tax professional for full details.