For taxable years beginning on or after January 1, 1998, an amount paid by a person for a long-term care insurance policy for the person and his or her spouse, calculated as follows: a.
(a)#
One hundred percent of the amount paid by the person for a long-term care insurance policy. In this subdivision, “long-term care insurance policy” means a disability insurance policy or certificate advertised, marketed, offered or designed primarily to provide coverage for care that is provided in the insured person’s home or in institutional and community-based settings and that is convalescent or custodial care or care for a chronic condition or terminal illness; the term does not include a medicare supplement policy or medicare replacement policy or a continuing care contract, as defined in s. 647.01 (2). “Long-term care insurance policy” applies to a policy that covers the person and his or her spouse.
(b)#
From the amount calculated under subd. 26. a., subtract the amounts deducted from gross income for a long-term care insurance policy in the calculation of federal adjusted gross income.
(c)#
For a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 26. b. by multiplying the amount by a fraction the numerator of which is the person’s wages, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the person’s total wages, unearned income and net earnings from a trade or business.
(d)#
Reduce the amount calculated under subd. 26. b. or c. to the person’s aggregate wages, unearned income and net earnings from a trade or business that are taxable by this state.