Christian Posted March 11 Report Posted March 11 A client has come in with a Form 1099-LTC which shows gross long term care benefits paid in block 1. In block 3 they are all shown as Reimbursed amounts. According to the instructions on the back of the form these benefits which are paid directly to the company who sends health aids to her home are not included in the client's income. I am just wondering if there is a federal form I need to fill out even though I am not including the amount in her income. Quote
Margaret CPA in OH Posted March 11 Report Posted March 11 I fill out 8853 to show the total costs and ins and outs then list on Sch. A any unreimbursed long term care expenses. It may be belt and suspenders but I want to show to IRS and my clients the details. YMMV 1 Quote
Christian Posted March 11 Author Report Posted March 11 I have used this form sometime in the past but her benefits are not per diem. Her insurer simply directly pays the charges directly to the health care provider. She does not receive any payments at all. These benefits are clearly not taxable. She is ,of course, chronically ill and has been so certified. Quote
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