Thank you for your reply Cynthia66
My mother is deemed chronically ill by both her Doctors and LTC Insurance company.
Her Asst Living, 2022, expenses are $96K (plus some medical out of pocket expenses). Her expenses exceed the amount the 1099 LTC reported for 2022 of $37K. Her plan is categorized as Tax Qualified. No federal tax consequence. She has reported premiums paid as a medical expense to date until it was approved and they stop charging her.
Are the Tax Qualified benefits of $37K netted against her 2022 total medical expenses ?
As of the end of 2022 she she has received back in benfits the amount she paid into this policy. If it is netted against expenses I feel like she was penalized on the money she paid into the policy since 2007. In 2023 she will begin receiving benefits beyond what she paid in? The policy caps out Sept 2024, $100 a day.
Having a hard time wrapping my head around how money she paid in expenses out of the pocket are being reduced by money she paid into the policy (tax qualified)?
