Qualified LTC services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance or personal care services required to treat a chronically ill individual under a plan of care prescribed by a licensed health care practitioner.
Personal care services performed by others can be included if a licensed health care practitioner prescribes a plan of care that includes those services.
See the Instructions for Form 8853 for more details.
If you received a Form 1099-LTC, enter it in TurboTax, as shown below:
- Less Common Income.
- Choose Miscellaneous Income, 1099-A, 1099-C / Start
- Scroll down to Long-term care account distributions (Form 1099-LTC), and continue to follow the prompts.
In most cases, long-term care insurance contracts are treated as accident and health insurance contracts. Amounts you receive from them (other than policyholder dividends or premium refunds) are excludable in most cases from income as amounts received for personal injury or sickness. See IRS Publication 525 for more information.
When you receive benefits under the policy, you can only deduct the medical expenses that exceed the insurance proceeds.
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