New York Form IT-249, officially titled Claim for Long-Term Care Insurance Credit, is a tax form used to calculate and claim a credit for qualified long-term care insurance premiums paid during the tax year. The credit is authorized under Section 606(aa) of the New York Tax Law and allows eligible individuals, sole proprietors, partnerships, S corporation shareholders, beneficiaries, estates, and trusts to claim a tax benefit based on qualifying long-term care insurance expenses. The form uses a credit rate of 20% of qualified premiums and includes specific calculations to determine the credit available for the current year, the amount that can be applied against tax liability, and any unused credit that may be carried forward to a future tax year. Form IT-249 is organized into eight schedules, labeled Schedule A through Schedule H, with different sections addressing premium payments, business entity information, credit allocations, beneficiary distributions, residency calculations, and credit carryforwards. The applicable schedules depend on the taxpayer’s filing status and whether the credit originates from personally paid insurance premiums or an allocation received through a partnership, New York S corporation, estate, or trust. Full-year New York State residents generally complete Schedules A, E, F, and H when applicable, while nonresidents and part-year residents use Schedules A, E, G, and H. Partnerships report their available credit through Form IT-204, while fiduciaries use Schedule D to allocate the credit between beneficiaries and the fiduciary. The form also establishes a $1,500 limitation on the current-year credit calculation for qualifying individual and fiduciary claims, subject to the applicable residency calculation, while allowing eligible unused amounts from previous years to be included through the carryover lines. Completing Form IT-249 accurately is important because the calculated credit must be reported on the appropriate New York income tax return, and the supporting schedules must correctly identify the premiums paid, the source of allocated credits, and the amount used or carried forward.
Who Can File Form IT-249?
Form IT-249 is intended for taxpayers who qualify for the New York long-term care insurance credit.
The form identifies several taxpayer categories.
Individuals And Sole Proprietors
Individuals and sole proprietors who paid qualified long-term care insurance premiums during the tax year may use Schedule A to calculate their credit.
The resulting credit is transferred to Schedule E for the applicable calculation.
Partners In A Partnership
An individual who receives a share of the long-term care insurance credit from a partnership must report that amount in Schedule C.
The partnership information must also be identified in Schedule B.
Shareholders who receive an allocated long-term care insurance credit from a New York S corporation must report their share in Schedule C.
The S corporation’s identifying information is entered in Schedule B.
Beneficiaries Of Estates Or Trusts
Beneficiaries who receive an allocated long-term care insurance credit from an estate or trust must report the amount in Schedule C.
The fiduciary uses Schedule D to identify beneficiaries and allocate their respective shares of the credit.
Partnerships And Fiduciaries
Partnerships and fiduciaries have additional reporting responsibilities.
- Partnerships calculate the available credit and report the applicable amount on Form IT-204.
- Fiduciaries use Schedule D to allocate the credit between beneficiaries and the fiduciary.
How To File Form IT-249
Form IT-249 must be submitted with the appropriate New York tax return.
The form specifically identifies four possible accompanying returns:
- Form IT-201, Resident Income Tax Return.
- Form IT-203, Nonresident And Part-Year Resident Income Tax Return.
- Form IT-204, Partnership Return.
- Form IT-205, Fiduciary Income Tax Return.
Select the return that applies to your taxpayer classification.
Information To Prepare Before Completing The Form
Gather the following information before starting:
- Name or names exactly as shown on the associated tax return.
- Taxpayer identification number shown on that return.
- Total qualified long-term care insurance premiums paid during the current tax year.
- Partnership, S corporation, estate, or trust information, if applicable.
- Employer identification numbers of relevant entities.
- Your allocated share of any long-term care insurance credit received from another entity.
- Beneficiary names and identifying numbers, if completing the fiduciary allocation.
- Credit amounts carried forward from the previous year’s Form IT-249.
- New York adjusted gross income information.
- Income percentage from the applicable Form IT-203 or Form IT-205-A, when required.
- Tax liability and other credit information needed for Schedule H.
Review the applicable instructions before determining which insurance premiums qualify for the credit.
How To Complete Form IT-249
Form IT-249 contains eight schedules covering the calculation, allocation, and use of the long-term care insurance credit.
The first page contains Schedules A through D. The second page contains Schedules E through H.
Complete only the schedules applicable to your taxpayer classification, while following the form’s instructions for transferring amounts between schedules.
Taxpayer Identification Information
The top of Form IT-249 contains two identification fields.
Name(s) As Shown On Return
Enter the taxpayer’s full name exactly as it appears on the New York income tax return to which Form IT-249 will be attached.
For a joint return, enter the names as shown on the associated return.
Identifying Number As Shown On Return
Enter the taxpayer identification number associated with the main tax return.
Use the same identifying number shown on Form IT-201, IT-203, IT-204, or IT-205, as applicable.
Associated Tax Return
Form IT-249 must accompany one of the following returns:
- IT-201.
- IT-203.
- IT-204.
- IT-205.
Make sure the credit is reported on the appropriate return.
Schedule A: Individual, Partnership, And Fiduciary Premium Calculation
Schedule A is used by individuals, including sole proprietors, partnerships, and fiduciaries to calculate the credit generated from qualified long-term care insurance premiums paid during the current tax year.
It contains three calculation lines.
Line 1: Qualified Long-Term Care Insurance Premiums Paid For The Current Tax Year
Enter the total amount of qualified long-term care insurance premiums paid during the tax year.
Only include premiums that meet the requirements for the New York long-term care insurance credit.
Use your insurance payment records and applicable tax instructions to determine the qualifying amount.
Enter the total in the dollar field provided.
Line 2: Credit Rate (20%)
The form provides a fixed credit rate of 20%.
Enter or retain 0.20 in the calculation field.
This percentage is used to calculate the allowable credit from the qualified premiums entered on Line 1.
Line 3: Credit For Qualified Long-Term Care Insurance
Multiply the amount entered on Line 1 by the 20% credit rate shown on Line 2.
Use the following calculation:
Qualified Premiums × 20% = Long-Term Care Insurance Credit
Enter the resulting amount on Line 3.
For example, if qualified premiums total $2,000:
$2,000 × 0.20 = $400.
The resulting $400 is the credit calculated on Line 3.
Where To Transfer Line 3
The form provides different instructions depending on the taxpayer’s classification.
- Fiduciaries: Include the amount from Line 3 in the Total line of Schedule D, Column C.
- All Others: Enter the amount from Line 3 on Schedule E, Line 8.
Schedule B: Partnership, S Corporation, And Estate Or Trust Information
Schedule B collects information about entities from which the taxpayer received a share of the long-term care insurance credit.
This schedule applies when you were a partner in a partnership, a shareholder of a New York S corporation, or a beneficiary of an estate or trust and received an allocated credit from that entity.
The schedule contains three information columns.
Complete a separate entry for each applicable partnership, New York S corporation, or estate or trust.
Name Of Entity
Enter the complete legal name of the partnership, S corporation, estate, or trust from which you received the long-term care insurance credit.
Use the entity’s identifying name as reflected in its tax documentation.
Type
Enter the appropriate entity classification using the codes provided on the form.
The accepted codes are:
- P: Partnership.
- S: S corporation.
- ET: Estate or trust.
Select the code corresponding to the entity that allocated the credit to you.
Employer Identification Number (EIN)
Enter the employer identification number of the partnership, S corporation, estate, or trust.
Use the EIN associated with the entity rather than your personal Social Security number.
Additional Entity Information
The form provides two entry rows for reporting entity information.
If you received credit from multiple entities, follow the applicable official instructions for reporting additional entities.
Schedule C calculates the total long-term care insurance credit received through partnerships, New York S corporations, and estates or trusts.
It contains four numbered lines.
Line 4: Share Of Credit From Your Partnership
Enter the amount of long-term care insurance credit allocated to you by a partnership.
Use the amount reported to you by the partnership.
If you did not receive any partnership credit, enter zero.
Line 5: Share Of Credit From Your S Corporation
Enter your allocated share of the long-term care insurance credit from a New York S corporation.
Use the credit information provided by the S corporation.
If you did not receive an S corporation credit, enter zero.
Line 6: Share Of Credit From The Fiduciary’s Form IT-249, Schedule D, Column C
Enter the amount of long-term care insurance credit allocated to you as a beneficiary of an estate or trust.
Use the amount reported for you in Schedule D, Column C, of the fiduciary’s Form IT-249.
If you did not receive an allocated fiduciary credit, enter zero.
Line 7: Total Allocated Credit
Add the amounts entered on Lines 4, 5, and 6.
Use the following calculation:
Line 4 + Line 5 + Line 6 = Line 7
Enter the resulting total on Line 7.
This represents the total long-term care insurance credit received through the listed entities.
Where To Transfer Line 7
The form provides separate instructions for fiduciaries and other taxpayers.
- Fiduciaries: Include the amount from Line 7 in the Total line of Schedule D, Column C.
- All Others: Enter the amount from Line 7 on Schedule E, Line 9.
Schedule D is designed for fiduciaries who need to allocate the long-term care insurance credit between beneficiaries and the fiduciary.
It contains three columns and separate allocation rows.
The information entered here helps identify each beneficiary and the amount of qualified long-term care insurance credit assigned to them.
Understanding The Schedule D Columns
Column A: Beneficiary’s Name
Enter the full name of each beneficiary receiving a share of the long-term care insurance credit.
The name must match the beneficiary’s name as reported on Form IT-205, Schedule C.
Column B: Identifying Number
Enter the identifying number associated with each beneficiary.
Make sure the number corresponds to the beneficiary listed in Column A.
Column C: Share Of Qualified Long-Term Care Insurance Credit
Enter the amount of qualified long-term care insurance credit allocated to each beneficiary.
Use the appropriate allocation information to determine each beneficiary’s share.
Schedule D Calculation And Allocation Rows
Total: Credit Available For Distribution
Enter the combined amount from Schedule A, Line 3, plus Schedule C, Line 7.
Use the following calculation:
Schedule A, Line 3 + Schedule C, Line 7 = Schedule D Total
Enter the result in the Total row.
This represents the combined credit amount available for allocation.
Beneficiary Allocation Row 1
Enter the first beneficiary’s name in Column A, identifying number in Column B, and allocated credit amount in Column C.
Make sure the information agrees with the beneficiary details on Form IT-205, Schedule C.
Beneficiary Allocation Row 2
If another beneficiary receives a share of the credit, enter that person’s name, identifying number, and allocated amount in the second available beneficiary row.
The allocated amount should accurately reflect the beneficiary’s share.
Fiduciary Row
Enter the portion of the qualified long-term care insurance credit allocated to the fiduciary in Column C.
This amount represents the fiduciary’s share rather than a beneficiary’s allocated share.
Important Transfer Instruction
The form directs fiduciaries to include the amount from Schedule D, Column C, Fiduciary row, on Schedule E, Line 10.
Use the fiduciary’s allocated amount when completing this transfer.
Schedule E: Calculation Of Credit Available For The Current Year
Schedule E combines the credit amounts calculated in the preceding schedules.
It determines the total long-term care insurance credit available for the current tax year.
The schedule contains four numbered lines.
Line 8: Credit From Schedule A
Enter the amount from Schedule A, Line 3.
This line applies to individuals and partnerships.
It represents the credit calculated from qualified long-term care insurance premiums paid during the tax year.
Line 9: Credit From Schedule C
Enter the amount from Schedule C, Line 7.
This line applies to partners, S corporation shareholders, and beneficiaries.
It represents the total credit allocated to the taxpayer through the relevant entities.
Line 10: Fiduciary Credit From Schedule D
Enter the amount from the Fiduciary row of Schedule D, Column C.
This line applies to fiduciaries.
It represents the portion of the qualified long-term care insurance credit allocated to the fiduciary.
Line 11: Total Credit Available For The Current Year
Add the amounts entered on Lines 8, 9, and 10.
Use the following calculation:
Line 8 + Line 9 + Line 10 = Line 11
Enter the resulting total.
This is the total credit available for the current-year calculation before applying the residency-specific limitations and other applicable calculations.
Where To Report Schedule E, Line 11
The form provides different instructions depending on the taxpayer’s classification.
Full-Year New York State Resident Individual, Estate, Or Trust
Complete Schedule F and Schedule H.
Nonresident And Part-Year Resident Individual, Estate, Or Trust
Complete Schedule G and Schedule H.
Partnership
Enter the amount from Line 11 on Form IT-204, Line 145.
Schedule F: Full-Year New York State Resident Calculation Of Total Credit
Schedule F is used by full-year New York State resident individuals, estates, and trusts.
It calculates the total credit available after applying the applicable New York adjusted gross income threshold and the current-year credit limitation.
This schedule contains four numbered calculation lines.
Line 12a: Credit Based On New York Adjusted Gross Income
Review your New York adjusted gross income (NYAGI).
If your NYAGI is less than $250,000, enter the amount from Schedule E, Line 11.
If your NYAGI is $250,000 or more, enter zero.
The $250,000 threshold determines whether the current-year credit from Line 11 can be included in this calculation.
Line 12b: Current-Year Credit Limitation
Enter the smaller of the following two amounts:
- The amount from Line 12a.
- $1,500.
This calculation limits the current-year credit to a maximum of $1,500.
For example, if Line 12a is $1,200, enter $1,200 on Line 12b.
If Line 12a is $2,000, enter $1,500.
Line 13: Credit Carryover From The Previous Year
Enter the unused long-term care insurance credit carried forward from the previous year’s Form IT-249.
Use the amount recorded as a carryover from the preceding tax year.
Do not enter the current-year credit here.
Line 14: Total Credit
Add the amounts entered on Lines 12b and 13.
Use the following calculation:
Line 12b + Line 13 = Line 14
Enter the resulting total.
This amount represents the total credit available for the Schedule H calculation.
Complete Schedule H after calculating Line 14.
Schedule G: New York State Nonresident And Part-Year Resident Calculation Of Total Credit
Schedule G is used by individuals, estates, and trusts that are New York State nonresidents or part-year residents.
Unlike Schedule F, this schedule includes an income percentage calculation to determine the portion of the credit attributable to New York.
It contains five numbered lines.
Line 15: Credit Based On New York Adjusted Gross Income
Review your New York adjusted gross income.
If your NYAGI is less than $250,000, enter the amount from Schedule E, Line 11.
If your NYAGI is $250,000 or more, enter zero.
This determines whether the current-year credit is eligible for further calculation.
Line 16: Income Percentage
Enter the income percentage from the applicable tax return or schedule.
Use one of the following sources:
- Form IT-203, Line 45.
- Form IT-205-A, Line 12.
If the income percentage is greater than 100%, enter 1.0000.
For example:
- 75% should be entered as 0.7500.
- 90% should be entered as 0.9000.
- 100% should be entered as 1.0000.
Do not enter a percentage greater than 1.0000.
Line 17a: Nonresident And Part-Year Resident Credit
Multiply the amount on Line 15 by the income percentage entered on Line 16.
Use the following calculation:
Line 15 × Line 16 = Line 17a
Enter the resulting amount.
This calculation adjusts the available credit according to the applicable New York income percentage.
Line 17b: Current-Year Credit Limitation
Enter the smaller of:
- The amount from Line 17a.
- $1,500.
This line applies the $1,500 maximum to the calculated nonresident or part-year resident credit.
For example, if Line 17a is $1,100, enter $1,100.
If Line 17a is $1,800, enter $1,500.
Line 18: Credit Carryover From The Previous Year
Enter the amount of unused long-term care insurance credit carried forward from the previous year’s Form IT-249.
Use the applicable prior-year carryover amount.
Line 19: Total Credit
Add the amounts entered on Lines 17b and 18.
Use the following calculation:
Line 17b + Line 18 = Line 19
Enter the total.
This represents the total credit available for the Schedule H calculation.
Complete Schedule H after calculating Line 19.
Schedule H: Calculation Of Credit Used And Carried Over
Schedule H is the final calculation section of Form IT-249.
It determines how much of the available long-term care insurance credit is used for the current tax year and how much remains available to carry forward.
It contains five numbered lines.
Line 20: Tax Due Before Credits
Enter the amount of tax due before applying credits.
Use the tax amount determined under the instructions applicable to your associated New York tax return.
The form specifically directs taxpayers to consult the instructions for this calculation.
Line 21: Credits Applied Against The Tax Before This Credit
Enter the total amount of other credits already applied against the tax before applying the long-term care insurance credit.
Use the applicable credit information from your tax return.
The purpose of this line is to account for credits that have already reduced the tax liability.
Line 22: Net Tax
Subtract Line 21 from Line 20.
Use the following calculation:
Line 20 – Line 21 = Line 22
Enter the resulting net tax.
This amount represents the tax remaining after accounting for credits applied before the long-term care insurance credit.
Line 23: Credit Used For The Current Tax Year
Enter the amount of the long-term care insurance credit used for the current tax year.
Determine the allowable amount using the applicable Schedule H instructions.
The amount must be considered in relation to the credit available from Schedule F or Schedule G and the remaining tax liability.
Line 24: Amount Of Credit Available For Carryover To Next Year
Calculate the unused portion of the credit that remains available for a future tax year.
The calculation depends on your residency classification.
Full-Year New York State Residents
Subtract Line 23 from Line 14.
Line 14 – Line 23 = Line 24
Nonresidents And Part-Year Residents
Subtract Line 23 from Line 19.
Line 19 – Line 23 = Line 24
Enter the resulting amount.
This represents the credit available for carryover to the following tax year.
Understanding The Credit Calculation
Form IT-249 uses several stages to determine the final amount of the long-term care insurance credit.
The calculations can be summarized as follows.
Stage 1: Calculate The Premium-Based Credit
Schedule A calculates the credit using qualified long-term care insurance premiums.
Qualified premiums × 20% = Schedule A, Line 3.
Stage 2: Include Allocated Credits
If you received credit through a partnership, S corporation, or fiduciary, report those allocations through Schedule B and Schedule C.
Fiduciaries use Schedule D to allocate the available credit.
Stage 3: Determine The Total Credit Available
Schedule E combines the amounts from Schedules A, C, and D.
The result is entered on Line 11.
Stage 4: Apply The Residency Calculation
- Full-year New York residents use Schedule F.
- Nonresidents and part-year residents use Schedule G.
- Partnerships report the amount from Schedule E, Line 11, on Form IT-204, Line 145.
Stage 5: Calculate The Credit Used And Carryover
Schedule H determines the amount used during the current tax year and the unused amount available for the next year.
Important Things To Remember When Completing Form IT-249
Before submitting Form IT-249, consider the following points:
- Use Qualified Premiums: Only include premiums that qualify for the long-term care insurance credit.
- Apply The Correct Rate: Schedule A uses a 20% credit rate.
- Identify The Correct Entity: Schedule B requires the name, entity type, and EIN of each relevant partnership, S corporation, estate, or trust.
- Report Allocated Credits Correctly: Use Schedule C to report credit received from other entities.
- Complete Fiduciary Allocations: Fiduciaries must use Schedule D to identify beneficiaries and allocate the credit.
- Check The NYAGI Threshold: Schedules F and G apply a $250,000 New York adjusted gross income threshold.
- Observe The $1,500 Limitation: Lines 12b and 17b limit the applicable current-year credit calculation to $1,500.
- Include Previous-Year Carryovers: Enter the eligible carryover from the preceding year’s Form IT-249.
- Use The Correct Residency Schedule: Full-year residents use Schedule F, while nonresidents and part-year residents use Schedule G.
- Complete Schedule H: Calculate the credit used and the amount available for future carryover.
- Attach The Correct Return: Submit Form IT-249 with IT-201, IT-203, IT-204, or IT-205, as applicable.
Final Review Before Filing
Before submitting Form IT-249, review each applicable schedule and verify that all calculations and transferred amounts are correct.
Taxpayer Information
- Name matches the associated New York tax return.
- Identifying number matches the associated return.
- Correct accompanying return has been identified.
Schedule A: Premium Calculation
- Qualified long-term care insurance premiums are entered on Line 1.
- Credit rate of 20% is entered on Line 2.
- Line 3 correctly reflects Line 1 multiplied by Line 2.
- Amount is transferred to the appropriate schedule.
Schedule B: Entity Information
- Partnership information is provided, if applicable.
- New York S corporation information is provided, if applicable.
- Estate or trust information is provided, if applicable.
- Correct entity type is entered using P, S, or ET.
- Employer identification numbers are accurate.
Schedule C: Allocated Credit
- Partnership credit is entered on Line 4.
- S corporation credit is entered on Line 5.
- Fiduciary credit is entered on Line 6.
- Line 7 correctly adds Lines 4, 5, and 6.
- Amount is transferred to Schedule D or Schedule E, as applicable.
Schedule D: Beneficiary And Fiduciary Allocation
- Total credit is entered correctly.
- Beneficiary names match Form IT-205, Schedule C.
- Beneficiary identifying numbers are accurate.
- Credit allocations are entered in Column C.
- Fiduciary’s share is entered correctly.
Schedule E: Current-Year Credit
- Line 8 reflects Schedule A, Line 3.
- Line 9 reflects Schedule C, Line 7.
- Line 10 reflects the Fiduciary row of Schedule D, Column C.
- Line 11 correctly adds Lines 8, 9, and 10.
- Correct reporting instructions are followed.
Schedule F Or Schedule G
- Correct residency schedule has been selected.
- NYAGI threshold has been checked.
- $1,500 current-year limitation has been applied.
- Previous-year carryover is entered correctly.
- Total credit is calculated correctly.
Schedule H: Credit Used And Carryover
- Line 20 reflects tax due before credits.
- Line 21 includes credits applied before this credit.
- Line 22 correctly subtracts Line 21 from Line 20.
- Line 23 reflects the allowable credit used.
- Line 24 correctly calculates the unused credit available for carryover.
Final Submission
- All applicable schedules have been completed.
- Calculations have been checked.
- Amounts transferred between schedules agree.
- Form IT-249 is attached to the appropriate New York tax return.
- A copy of the completed form is retained with the tax records.
Final Reminder: Form IT-249 is used to calculate the New York Long-Term Care Insurance Credit and determine how much can be used during the current tax year or carried forward. Pay particular attention to the 20% premium calculation, the $250,000 NYAGI threshold, the $1,500 current-year limitation, and the residency-specific schedules. Completing these calculations accurately helps ensure that the credit is properly reported on the associated New York tax return.