Get your taxes done using TurboTax

Enter 365 for LTC Period when reporting your 1099-LTC for Reimbursement (not per diem). 

Then enter the total amount of LTC costs for the year, and the amount reimbursed. This will zero out the 1099-LTC as income, since you have more expenses than you were reimbursed for.

You should then receive a screen stating 'none of your long term care benefits are taxable.'

Yes, in Medical Expenses, enter the amount of LTC expenses that you were not reimbursed for, plus any premiums you paid for your Long Term Care insurance.