Do I need to report 1099-LTC BENEFITS?

[GayleS03]

Received a $100 reimbursement for durable medical equipment cost from our LTC policy. (No other activity) Following the instructions (in TT as well as the 8853) literally, I don't see a place to reflect either that $100 payment OR the corresponding cost. The only instructions I have found refer to cases of per diem or periodic payments, etc. Does anyone know the proper handling?

[JillS56]

Here are the steps to enter the 1099-LTC.  The 1099-LTC form is entered in the Wages & Income section where you will be asked about the reimbursements as well as the costs/expenses.

As you work through the TurboTax interview, you will be asked for the amount from the 1099-LTC as well as actual costs/expenses. If costs/expenses are equal or greater than the reimbursed amount, none is taxable. The 1099-LTC form is entered in the Wages and Income section. Follow these steps:

• Select Federal Taxes (top of program)
• Select the Wages & Income (sub-tab)
• If shown, select "Skip to all income" in order to see all income options
• Scroll down to Less Common Income
• Select Miscellaneous Income, 1099-A, 1099-C
• Select Long-term account distributions (Form 1099-LTC)  (click on first screenshot below for more detail)

As you work through the TurboTax interview, you will come to page that will ask about your costs as well as your reimbursements (click on second screenshot below for more detail)

NOTE:   If the policy was issued before August 1996, different rules apply.

[GayleS03]

Thanks, but I had already done all that.... those "interview questions" only ask you to enter the distribution if it's "per diem gross benefits" (but only if the per diem box is checked) OR "accelerated death benefits"  There is no screen to enter "reimbursed amount."  (In my case it's a reimbursement of the cost of bathroom equipment for the covered person, and that per diem box is NOT checked.) On the cost side, the interview asks for LTC days and cost of qualified LTC services. (We had no services, etc.) There is no screen to enter cost of "things" like equipment.  Although it's counterintuitive to disregard the 1099 LTC completely, it's not clear how to reflect it. 

[JulieS]

In your case, since the only expense was for durable medical equipment, you do not need to report the 1099-LTC.

Just make sure you don't take a medical deduction for the same expense because you were reimbursed.