Hi Robs462,
I'll throw in my 2 cents for what it is worth.
I agree with Rhoder19 and AmyC with one exception. While I agree that the long-term benefits should not be taxed, I'm not entirely true it is by virtue of being a qualified contract. That is but part of the equation.
For my mom’s taxes, the key aspect was that per diem benefits not exceed an allowed amount. Theoretically, if per diem benefits exceeded the allowed amount then one would be taxed on the exceedance. This is what form 8853 part II was checking ... it was checking for that exceedance. Ultimately, this form was part of the forms sent to the IRS.
That said, you indicated that “per diem” was not checked but “reimbursed amount” was. So, I’m not sure what this means.
Personally, I would be hesitant not entering the 1099-LTC into TurboTax because as you indicate, this form is produced by virtue of inputting. If you don't submit the form, then in my book, that leaves you open to the possibility of the IRS raising a fuss ... which I guarantee this year ... would not be pleasant to deal with.
When I use TurboTax, I like to enter info step by step. I would suggest doing all other aspects of your taxes and then as last step, inputting the 1099-LTC. Once entered, you should not see a change in tax owed.
Good luck.
Timoshenko
