How Do I Claim the NYS Nursing Home Assessment Credit?
Learn how to claim the NYS Nursing Home Assessment Credit, including eligibility, required documentation, and filing steps to ensure accurate submission.
New York State offers a tax credit to help offset nursing home costs, reducing state income tax liability for eligible residents. Understanding how to claim this credit ensures you receive the full benefit while avoiding errors that could delay processing.
Who Qualifies
Eligibility depends on who pays the nursing home assessment fee, a state-mandated surcharge passed on to residents. This credit is available to those who cover the fee out of pocket for themselves or a dependent. Payments made through Medicaid or other third parties do not qualify.
Only full-year New York State residents can claim the credit. Part-year residents and nonresidents are ineligible, even if they pay nursing home costs in the state. The credit is nonrefundable, meaning it can reduce tax liability to zero but cannot generate a refund.
Eligible Costs
The credit applies solely to the nursing home assessment fee, separate from room, board, and medical expenses. This fee appears as a distinct line item on billing statements, often labeled “nursing home assessment.” If it is unclear, request an itemized invoice from the facility.
Only personal payments qualify. If insurance, a long-term care policy, or another source reimburses the cost, the reimbursed portion is not eligible. The taxpayer or their legal representative must have paid the fee directly.
Calculating the Amount
The credit equals 6% of the total assessment fees paid within the tax year. For example, if a taxpayer pays $10,000 in assessment fees, they qualify for a $600 credit.
Only payments made during the tax year count. Prepayments for future care or outstanding balances from prior years do not apply. If multiple individuals contribute, each can claim only their share. Maintaining records such as canceled checks or bank statements helps verify payments.
Documentation and Records
Accurate records are essential. Keep invoices and payment receipts that specify the assessment fee. If billing statements combine charges, request an itemized breakdown.
Proof of payment, such as bank statements, canceled checks, or credit card records, should be retained. If the assessment rate changes during the year, written confirmation from the facility can help reconcile claimed amounts.
For those sharing financial responsibility, document cost-sharing arrangements to clarify each contributor’s portion.
Filing Steps
To claim the credit, taxpayers must complete Form IT-258 and report the total assessment fees paid. The credit amount is then transferred to the appropriate line on Form IT-201 for full-year residents.
Tax software and professional services typically prompt for this credit. If filing a paper return, attach Form IT-258 and retain copies of all supporting documents. Errors or discrepancies may lead to requests for additional verification from the New York State Department of Taxation and Finance.
Handling Post-Filing Clarifications
Some taxpayers may receive requests for further documentation if reported fees do not match facility records or if details are incomplete. Responding promptly with itemized billing statements, payment receipts, and facility correspondence helps resolve issues.
If a claim is denied due to insufficient documentation, an appeal can be filed with a written explanation and supporting records. Keeping organized financial records throughout the year simplifies this process and reduces the likelihood of disputes.