You will need to
enter the 1099-LTC on your tax return because the IRS has received a copy and
is expecting to see the income (and related expenses) reported. Here are the steps to enter the 1099-LTC and
related expenses:
As you work through
the TurboTax interview, you will be asked for
the amount from
the 1099-LTC as well as actual costs/expenses. If costs/expenses are equal or greater than the reimbursed amount, none
is taxable. The 1099-LTC form is
entered in the Wages & Income section.
Follow these steps:
- Select Federal
Taxes (top of
program)
- Select the Wages &
Income (sub-tab)
- If shown, select "Skip to all
income" in
order to see all income options
- Scroll down to Less Common
Income
- Select Miscellaneous
Income, 1099-A, 1099-C
- Select Long-term
account distributions (Form 1099-LTC) (click on first screenshot below for more detail)
As you work through
the TurboTax interview, you will come to page that will ask about your costs as well as your reimbursements (click
on second screenshot below for more detail)
NOTE: If the policy was issued before August 1996,
different rules apply.
