No. 29314 (Amendment): R865-9I-52. Subtractions For Health Care Insurance and For Premiums for Long-term Care Insurance Pursuant to Utah Code Ann. Section 59-10-114

DAR File No.: 29314
Filed: 12/13/2006, 02:29
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Income tax deductions for health care and long-term care insurance may be deducted only to the extent the amounts were included in federal adjusted gross income. Since these two deductions are aggregated with other amounts and the aggregate must reach a certain level before a federal deduction is allowed, it is unclear what amounts are included in federal adjusted gross income.

Summary of the rule or change:

The proposed change indicates that the income tax deductions for health care insurance and long-term care insurance shall be calculated in a manner to maximize the deduction.

State statutory or constitutional authorization for this rule:

Section 59-10-114

Anticipated cost or savings to:

the state budget:

None--The proposed rule mirrors Tax Commission practice.

local governments:

None--The proposed rule mirrors Tax Commission practice.

other persons:

None--The proposed rule mirrors Tax Commission practice.

Compliance costs for affected persons:

None--The proposed rule, which mirrors Tax Commission practice, ensures that taxpayers will receive the maximum income tax deduction for the health care insurance and long-term care insurance deductions.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no anticipated impacts. D'Arcy Dixon, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY UT 84134

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/31/2007

This rule may become effective on:

02/07/2007

Authorized by:

D'Arcy Dixon, Commissioner

RULE TEXT

R865. Tax Commission, Auditing.

R865-9I. Income Tax.

R865-9I-52. Subtractions For Health Care Insurance and For Premiums For Long-Term Care Insurance Pursuant to Utah Code Ann. Section 59-10-114.

A subtraction from federal taxable income under Subsection 59-10-114(2) for health care insurance and for premiums for long-term care insurance shall be determined in the manner that provides the greatest possible subtraction under Subsection 59-10-114(2).

 

KEY: historic preservation, income tax, tax returns, enterprise zones

Date of Enactment or Last Substantive Amendment: [July 20, 2005]2007

Notice of Continuation: April 22, 2002

Authorizing, and Implemented or Interpreted Law: 59-10-114