You can enter your 1099-LTC and determine if any of the Long Term Care payments you received are taxable in any version of TurboTax other than the Online Free version. You'll receive Form 1099-LTC if you get money from long-term insurance or life insurance under an accelerated death benefits clause.
Here's how to enter your 1099-LTC into TurboTax:
Have a 1099-LTC showing a reimbursed amount and a qualified contract (boxes 3 & 4). The "jump to response" brings me to the "Medical Expenses" section, where I can enter personal care expenses and "reimbursements" I received. It doesn't reference that the reimbursements were documented on a 1099-LTC. (It also doesn't flow to the 8853, Section C, which appears correct.) In such a case where the distributions were neither per diem (or periodic) or accelerated death benefits, is it sufficient to just run the income and costs through the medical expense section of Schedule A?
@GayleS03 To enter a Form 1099-LTC
Click on Federal Taxes (Personal using Home & Business)
Click on Wages & Income (Personal Income using Home & Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Miscellaneous Income, 1099-A, 1099-C, click the start or update button
On the next screen - On Long-term care account distributions (Form 1099-LTC), click the start or update button
Thank you, but I had already checked that out. It doesn't seem to fit the situation I'm asking about, where there are no periodic payments/per diem OR accelerated death benefits. If you enter any dollars, it generates entries to the 8853 (Pt C), and the instructions to that say no entries should be made.
Use Form 8853 to:
Enter your 1099-LTC in TurboTax and TurboTax will apply the data to the correct forms. Why do you think there should be no entries on Form 8853? Section C is for long-term care contract reporting.
Thank you for responding.. Here's why I said I didn't think the 8853 should have entries..... Instructions to the 8853 for 2023, top of page 9, on the flow chart.... When you answer "no" to the two questions, it says "Don't complete Section C." The two questions are about whether you received payments made on a per diem or other periodic basis or received accelerated death benefits. This situation has neither of those... it's simply a reimbursement of specific expenses for a chronically ill person. I'm confident it's not taxable; the dilemma is how to reflect it on the return.
The payor is required to send you the LTC and you know that it isn't taxable. You can leave it off your return since it has no tax implication or you can pick an easy method to report it not using Form 8853. Add the income and then subtract it all in one area.
First enter the income:
1. go to the federal income section
2. scroll to the bottom
3. Miscellaneous Income, 1099-A, 1099-C, Start
4. Scroll to the bottom
5. Other reportable income, Start
6. Other taxable income?
7. Select YES
8. Description 1099-LTC
9. Amount, enter your amount
10. Continue
Subtract:
1. Other taxable income?
2. Select YES
3. Description 1099-LTC not taxable
4. Amount, enter negative of same amount
5. continue
Those precise steps didn't work smoothly with my desktop Deluxe edition of TT..., but your answer gave me more comfort that nothing is really required for the tax return,,,, and that for my peace of mind, I might just have to "jimmy rigg" something so there is at least an acknowledgement of the receipt in the file I transmit. I'm going to go ahead and enter in the costs and the reimbursement (equal numbers) in the other income area for the 1099-LTC, and let it go ahead and flow to the 8853 (lines 22, 23 and 24). This seems like a situation where TT could enhance the instructions so people don't have to work so hard to figure this out. I'm sure it is not an uncommon situation.
Amy, a sincere Thank You for "listening".... several others didn't really hear the question, just cut and pasted steps that didn't get to the core issue.