1099-LTC

[Patrick Michael]

This a the first time I have had a client receive a 1099-LTC and was wondering if anyone has experience with these. Box 1 has an amount and "Reimbursed amount" is checked in box 3.  From what I was able find if box 3 is checked "Reimbursed amount" and only box 1 has an amount then none of the benefits paid are taxable (this is a qualified contract). I thought it should be reported on form 8853, part c, but after following the flow chart in the instructions it does not appear that the form needs to be filled out since it was not a per diem. Does this need to reported elsewhere? Has anyone not reported it and had a CP 2000 sent?

Thanks.

[KEYWEST_RICKS]

I always work through the 8853 which eventually puts it as non taxable.

 

but also most of the ltc insurance policies I have seen reimburse on a per diem ......so just to be safe I put the 8853 in the return

[jasdlm]

I agree.  Just finished one.  I always complete the 8853.

[Patrick Michael]

Thanks