Got a 1099-LTC for a qualified LTCi. All reimbursements paid to non employee for assistance (understand the difference between non employee and employee). Only other income is social security for me & spouse.
Here is my understanding what has to be done for future reference.
1040-SR
TurboTax Deluxe filled out form 8853 Section C. My LTC reimbursement is not per diem and is below daily per diem limit of $390 anyways. $0 taxable to forward to Sched 1 to 1040 AGI.
California 540
California doesn't tax Social Security. Neither 540 or CA directions indicate anything about 1099-LTC. Looks like Turbotax just depend on IRS 8853->Sch1->1040 to pickup any taxable LTC. Therefore, Calif has no special rules for this.
1099-NEC
Get signed W-9 from contractor to keep on file.
Use W-9 info to issue 1099-NEC (using TaxBandits.com to efile federal, state, mail to contractor)
No need to worry about 1096 (TaxBandits.com handles coordination with IRS on efile)
Am filing late (1/31 deadline) So need to pay $50 late penalty for each late form (x2 1099-NEC to IRS, 1099-NEC to recipient) Penalty will be assessed by IRS and notified via letter.
