If a taxpayer receives a settlement for "cash payment in lieu of continuing a ltc insurance policy, is any of the amount received taxable? More info - they received a form 1099-LTC with amount received in box 1 ($35625.32) and box 3 is checked as "reimbursed amount". And they received a letter also providing them with the amount of total premiums paid $34245.26 and total claim benefits received $0. is the full amount of $35625.32 taxable or only the difference of amount received and premiums paid (35625.32-34245.26=1380.06)?
