I received an offer to surrender my Long Term Care Certificate of coverage with a payoff. My payments were tax deductible. How can I figure out my tax liability?

Is the whole amount that I received added to my income? Do I get to minus the amount I paid in? I always did a long form and claimed the deduction on my taxes?

537

Expert Alumni

Feb 5, 2024 1:19:54 PM

The whole amount you received would be taxable if you deducted the premium payments. Otherwise, you would be deducting the premium payments twice.

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I received an offer to surrender my Long Term Care Certificate of coverage with a payoff. My payments were tax deductible. How can I figure out my tax liability?