Long Term Care Premium - 20 years 80% refund

[Judy77tax]

The LTC premiums have increased dramatically over the last 10 years.  The company has offered a refund of 80% of what I have paid over 20 years.  The payments have been defucted from my state retirement pension check each month. Will this refund, with cancellation of the LTC policy, be taxable ?  Can I deposit it into an annuity to reduce tax liability over my remaining years? I am in my late 70's.

[Anonymous_]

@dmertz 

[NCperson]

@Judy77tax was the deduction from your pension on a pre-tax or after tax basis? if after tax basis, the premium refund is not taxable to you.