Question

When taking the Long-Term Care Insurance Premiums credit on the Oregon return, which statement is incorrect:

a. The credit is 15% of the premiums or $500, whichever is less.
b. Part-year residents may take the full credit and non residents must multiply the credit by their Oregon percentage.
c. If you received a benefit from a Federal itemized deduction for LTC premiums, you can still take the credit, but you must report that itemized amount as an addition on your Oregon return.
d. If filing MFS, each spouse can divide the credit any way they choose, however the combined credit is still limited to the maximum credit as if filing jointly.

Answer 1

The statement that is incorrect regarding the Long-Term Care Insurance Premiums credit on the Oregon return is that if you received a benefit from a federal itemized deduction for LTC premiums, you can still take the credit, but you must report that itemized amount as an addition on your Oregon return.

Step-by-step explanation:

The incorrect statement regarding the Long-Term Care Insurance Premiums credit on the Oregon return is option c. If you received a benefit from a Federal itemized deduction for LTC premiums, you can still take the credit, but you must report that itemized amount as an addition on your Oregon return. This statement is incorrect because if you received a benefit from a federal itemized deduction for LTC premiums, you cannot take the credit on your Oregon return.