How the payment is treated for tax purposes depends. The amount you received (the surrender value) of your LTC policy may be taxable depending on the circumstances of your surrender. If you are only receiving back the premiums you paid it is not taxable, unless you have deducted the premium payments as an itemized deduction (medical expense) on your tax returns in previous years. In that case, you have to include the amount previously deducted as other income on your tax return. The insurance company should have sent you either a Form 1099-LTC or a statement showing the details of your payment which you can use to determine if the payment was taxable. If you did not receive anything, I suggest you contact the insurance company.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
