Hello and thank you in advance for guidance, it is appreciated,
My dad received a 1099-LTC for 2024 (and we will for 2025) in the amount of around $73k.
Box 3 is marked "per diem", however, we did not receive a per diem. He was only reimbursed approved expenses which included CNA's, RN's, and then eventually, in 2025, a memory care facility.
His LTC covered up to $287 a day, but some days we spent a lot more and others, less. We were only reimbursed for approved expenses, not the same amount every day no matter what we spent.
Box 4 is check as qualified contract.
On my parents return for 2024 the $73k is shown as income on line 8 of 1040.
QUESTION: Do I need to contact the LTC Co and ask for a corrected 1099-LTC, enter a reimbursement amount somewhere, a form to explain it's reimbursement, subtract the reimbursement from the income somewhere, or is this correct?
