LTC insurance from IBM is considered income (but not Self Employment income) and is taxable. Here is how I have always entered it and never had a problem E-Filing. I have not -EFiled this year, but unless something has changed, just answer the questions as follows. The answers to these questions are not transmitted to the IRS, just used by turbo tax to determine if it is self -employment income
- Enter it under 1099-MISC income
- Enter all the data from the 1099-Misc on the data entry fields
- Continue and enter a description for the expense – I just say reimbursement of medical expenses
- Continue and on the next screen check that none of these situations apply
- On the next screen say that it did not involve work like your main job
- On the next screen just check that you are getting it for 2019
- On the next screen check that it did not involve an intent to earn money
- Then continue with the any more 1099-Misc
Remember that the answers are NOT sent to the IRS, just a way for turbo tax to enter it correctly on the 1040
The $500 will show up on schedule 1 line 8 and then transfer to line 7a on the 1040.
