Do I need to enter Gross long-term care expenses from form 1099-LTC on tax return if "Reimbursed amount" is checked in Box 3? "Per diem" is not checked.

[MarilynG1]

If you received a 1099-LTC, type 'long term care' in the Search area, then click on 'Jump to long term care'.

Continue through the screens about Medical Expenses, until you reach  'Tell us about anything paid for long-term care services'.  

Enter the amount of the Gross Long Term Care Benefits Paid shown on your 1099-LTC.

Continue to the screen 'Tell us About Medical Reimbursements'.

Again, enter the amount from your 1099-LTC.  

This creates the equal expense/reimbursement, so there's no tax effect, but you are reporting your 1099-LTC (since the IRS gets a copy). 

Here's more detailed info on Form 1099-LTC.

[Boparis354]

I have spent much time on Turbo Tax trying to locate where to enter 1099- LTC information. The jump to feture is no help. Please reply.

[PattiF]

You can enter your 1099-LTC as Miscellaneous Income, using these steps:

1. Click on Federal > Wages & Income   
2. Scroll to the Less Common Income section and click on the Start/Update box next to Miscellaneous Income, 1099-A, 1099-C. 
3. On the Let's Work on Any Miscellaneous Income screen, click the Start/Update box next to Long-term care account distributions (Form 1099-LTC).
4. On the screen, Any Long-Term Care Contracts? click the Yes radio button and click Continue. 
5. Continue through the interview, entering the requested information.

TurboTax will generate Form 8853 - Archer MSAs and Long-Term Care Insurance Contracts.

@Boparis354 

[Rates Payer]

This method does not work. TurboTax won’t let me get past entering something called “number of days in the long term care period” and “costs”  when you get to the part that checks the federal return for errors, TurboTax shows it’s an error not to input these numbers. Form requires them, I guess. TurboTax  is failing here— WHAT IS A LONG TERM CARE PERIOD? 

I got 100% reimbursed in 2022 by my LTC insurance company. I should not have to input anything about LTC periods. 

[ShirlynW]

The benefit period is the minimum length of time an insurance company will pay benefits. While many Long-Term Care Insurance policies often have a benefit period, there is usually no time limit that defines how long you can receive care services. Generally the money is not included in your taxable income, but sometimes the payment is taxable.

Since you indicated that box 3 is checked, TurboTax requires this information to be included.

[TE22]

I want to thank MarilynG1, PattiF and ShirlynW.

After searching for several hour for where I was suppose to enter the LTC amounts, between the three of you I got my answer.

Just wish it was cut and dry instead of having to go to 2 or 3 places to enter it all in.

It would be nice if the instructions stated to enter here, then go here and then here. But it doesn't and sets you up for an audit.

And then to top it off, it will totally change next year.

I have PDF'd this subject and high lighted what was done to assist for next  year.

Thank you again for having all of this on one subject vs 10.

[laurabowles4711]

it would be better if Turbotax walked you through this on a 1099-LTC form.  which I went round and round with before checking with the IRS website and then to this community.  

[robs462]

The long-term care section under the path of Less Common Income > Miscellaneous Income > Long-term care account distributions (Form 1099-LTC) needs improvement.

Per numerous threads on the Community forum, there is much confusion on this subject, therefore asking Employee Tax Experts to pass along this feedback to their product development team.

@AnnetteB6  @DavidD66 @DawnC @AmyC @MarilynG @MarilynG1 @KrisD15

Why don’t the step-by-step questions mirror the boxes and entries on Form 1099-LTC, similar to the behavior for other 1099s (e.g INT, DIV)?  It seems to ask for some of the information from the form, but not all.  It doesn’t ask which checkbox in box 3 is marked (per diem or reimbursed amount), or box 4 – qualified contract.  I think the entries in these boxes help determine whether Form 8853 needs to be generated.

As @GayleS03 noted last year, refer to the IRS Form 8853 Instructions, specifically the flowchart at top of page 9.  If you answer ‘no’ to the first two questions, it states to not complete Section C.   Yet, by answering TT’s questions as noted below (sample responses), Form 8853 is generated. 

• Distribution – yes;  Inherit – no
• Insured person – (person1);  Policy holder – (person1)
• Did (person1) receive – yes
• Did any other person receive – no
• Terminally ill - no
• Per Diem Gross Benefits – blank (since it was a reimbursement, not per diem)
• Accelerated Death Benefits – blank
• LTC No. of Days – this is not noted on the 1099-LTC, so is very unclear and confusing, entered 365
• Cost of Services – again, not on the 1099-LTC, so assume you need to retrieve elsewhere – entered $100k for facility costs
• Total Reimbursement – assume this is referring to box 1 from the 1099-LTC when the reimbursement checkbox is marked; if true, should clarify interview question – entered $25k

Despite entering the above, the next page shows a blank LTC amount for person1.  Then the next page states that none of reimbursements are taxable, which is as expected.  Yet, in forms view, Form 8853 was generated.  And via Print Center, if you print Tax Return Only, Form 8853 is included.  So, I assume it’s also electronically transmitted.  Again, according to the instructions, Section C on Form 8853 is not required because this was neither per diem or accelerated death benefit payments.

In summary, the interview questions can be improved and based on the responses, it should follow the IRS instructions so that the appropriate action, or inaction, is taken.

@DeanM15  @laurabowles4711 

[AmyC]

The IRS does not allow the program to match the forms. The programmers have to work around this limitation, even when there are times, it would be easier for you. The program tends to assume that you aren't trying to enter forms that you should not. We see 1099-Q questions regularly where people are just determined to enter a form that isn't taxable and should not be entered. Both your LTC and the Q could be taxable and those should be entered. Since yours is not, tuck it away in your tax folder.

@robs462 

[robs462]

@AmyC

Can you please further explain your comment, "the IRS does not allow the program to match the forms."   What does that mean and can you provide a link to any documentation to support your response?   When you enter information from a 1099-INT form, the software provides for entry for every box, so why can't the software do the same for Form 1099-LTC?