Is the surrender value of a non-qualified long-term care policy taxable? OR, only values above premiums paid?

Yes, the surrender value of your LTC policy could be taxable depending on the circumstances of your surrender. If you are receiving back the premiums you paid in, this is not taxable unless you have taken this premium as a tax deductible medical expense in previous tax years. 

Thanks for your response.  The policies were non-qualified so no deductions were taken (all after tax dollars - no deductions, no credits).  Company, Penn Treaty, was taken over by State Guaranty (this has been going on for years).  They increased premiums by over 100% (or take a reduction to almost no benefit) so they offered a surrender option which we took.  We will receive a 1099-LTC but would give no information on taxable amounts.  The surrender value of my husband's policy was way lower than premiums paid in and the surrender value of my policy was about +$2000 over premiums paid in.  Have no idea how surrender values were calculated.  They would not consent to a 1035 exchange.  It is almost impossible to find any information on this issue and next to impossible to speak to anyone in the IRS.  Most of the info I have gotten is from this community.  As I read it, I am not going to report the surrender value of either policy on our 2020 tax return.  If the additional information I have provided changes your response, please let me know.

Surrender Value Cash received over the policy basis (normally premiums paid in) is usually taxable income. The 1099-LTC will have the information you need.  Here is a helpful link on the 1099-LTC form boxes once you receive it.