Bill > HB05144

This bill proposes to amend the state's tax code to create a personal income tax deduction for specific payments received from insurance companies related to long-term care insurance policies. Specifically, the deduction would apply to payments a taxpayer receives in exchange for buying out or canceling a long-term care insurance policy, but only for the portion of the payment that is considered taxable income at the federal level. Long-term care insurance is a type of insurance that helps cover the costs of personal care services and supports for individuals who need assistance with daily living activities due to age, illness, or disability. By offering this tax deduction, the bill aims to provide some financial relief to individuals who may receive a lump sum payment when they terminate their long-term care insurance policy, effectively reducing their state tax burden on this type of income.

Budget and Finance

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB05144&which_year=2025