long term care benefits paid

[grandmabee]

received a 1099-LTC with amount in box 1 ( gross long term care benefits paid)

box 3 checked for reimbursed amount.

I'm not sure what to do with this.

Where do I report it. I know can't take medical deductions if it was reimbused. Is this income and then I take the medical?

Hope others are having to work and can give some help

[grandmabee]

file form 8853. I guess if I took the time to look up before posting.

[Margaret CPA in OH]

Thanks, bcolleen. I will need this for 2009. So nice to know ahead of time!

[grandmabee]

Well now I'm not sure if that is what I need because mine was only for reimbursement.

[jasdlm]

Not sure what you mean by 'only for reimbursement'. I have always completed 8853 and put excess (above what is reimbursed), if any, on schedule A

[grandmabee]

Not sure what you mean by 'only for reimbursement'. I have always completed 8853 and put excess (above what is reimbursed), if any, on schedule A

the 1099 LTC shows box 1 1074

box 3 reimbursed amt is checked

box 4 is checked

box 5 chroncially ill is checked

so on form 8853 I go to part C and answer no on line 17 and no on line 18

line 19 says for payment received on a per diem or other periodic basis. is that where I put box 1 infor from.

its not a per diem amount just reimbursement

any help please

[grandmabee]

Not sure what you mean by 'only for reimbursement'. I have always completed 8853 and put excess (above what is reimbursed), if any, on schedule A

I am still having trouble with this.... so do I only fill out Part C lines16,17,18, 24,25,26

thanks for the help

[jasdlm]

I complete 19 and 23. I assumed, since the contracts (at least the ones I have experience with) reimburse a maximum daily rate, that this is 'per diem'.

So: I complete line 19, 20, 23, 24, 25, and 26. Hopefully I've been doing it correctly.

Good luck.

[grandmabee]

Well maybe your right.....I didn't think of a daily limit. I just new the amount that was reimbursed. so how many days do you use?

[jasdlm]

# of days actually in the Nursing Home during 2008 . . . Was the 2008 reimbursement for 2007? If so, I would use per diem rate per policy and divide total reimbursed by policy per diem rate to get # of days.

[grandmabee]

Mine was for home nurse aid care. They paid the wages plus payroll taxes. It was all in 2008 and he has since died so amout was only 1075.

[jasdlm]

There's usually still a per diem amount for HHC on the policies. I would just go with that.

[grandmabee]

thanks for all your help with this.

[Maribeth]

thanks for all your help with this.

My experience with these LTC policies is that if it is checked reimbursement, then it truly is a reimbursement process. My elderly client has a reimbursement policy and the insurance company is not paying her per diem, it actually reimbursed the nursing home charges. There is no income and no deduction.

My other elderly client has a per diem policy. This policy is reimbursing her $80 per day for her care in the nursing facility. She gets the $80 per day. Of course, it only pays a portion of her daily charges so there is a medical deduction after the reimbursement.

FWIW,

Maribeth