I have recently received a Form 1099-LTC on my deceased mother's behalf. She died in 2024, and I subsequently filed a benefit claim with her LTC insurance company. I eventually received a one-time benefit payment in 2025. The LTC benefit amount I received is reported in Box 1 of the 1099-LTC form. Box 3 has a "X" checked for "reimbursed amount". Box 4, Qualified contract, is checked.
As I understand, since the Box 3 identifies the amount paid as being a "reimbursed" payment, the amount in Box 1 is NOT TAXABLE. However, it gets a bit confusing as I try to fill out the questionnaire on Turbo Tax.
In Turbo Tax, do I check YES that I received a distribution for a LTC contract, and YES that I inherited the LTC contract? If so, then Turbo Tax ask if I received a per diam payment or an accelerated death benefit. As the payment was a "reimbursement", do I answer NO to this question?
