ou'll receive Form 1099-LTC if you got money from long-term insurance or life insurance under an accelerated death benefits clause.
Here's how to enter your 1099-LTC into TurboTax:
- Open (continue) your return if it's not already open.
- Search for this exact phrase (copy/paste strongly recommended): 1099-ltc, long-term care - distribution and select the Jump to link.
- On the Any Long-Term Care Contracts? screen, answer Yes to the first question (and Yes to the second question if it applies, otherwise No) and select Continue.
- Follow the instructions. If you need Form 1099-LTC we'll fill it out for you.
Note: In TurboTax Online Free Edition, you'll be prompted to upgrade to Deluxe.
Depending on which boxes of the 1099-LTC are checked, when you work through the interview you are asked to enter information for the items that may be taxable. Box 4 may be checked to indicate the benefits were from a qualified long-term care contract. Answers to the narrative questions will determine if the amounts are taxable or non-taxable. The insurance carrier may also provide information on the policy benefits.
The 1099-LTC does need to be entered, in TurboTax, even if you know it is not taxable. TurboTax (TT) will prepare for 8853 to calculate the taxable portion (even if 0).
In TurboTax (TT)
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