Had LTC expenses of $41,000 but per diem payments of $42,000. Can I deduct any of the LTC expense as medical expenses

[PatriciaV · Accepted solution]

Yes, you may include the medical expenses (including long-term care) that you paid during the year, but you must reduce those medical expenses by any reimbursement you received. This is true whether you receive the reimbursement directly or it's paid on your behalf to the doctor, hospital, or other medical provider.

So if your per diem payments were more than your long-term care expenses, you would have no medical deductions.

[DonaldRHamilton]

I have a unique situation in that we cancelled our mom's long term care policy into which she paid over $42,000 in premiums of a period of 18 years, and received only $147.00 in benefits over the term of the policy. This policy was cancelled in late 2018, but we did not receive a reimbursement check and Form 1099-LTC until 2019. The Form 1099-LTC has the following information: Box=$17,082.22; box 2=$0.00; Box 3: Per diem box is not checked, Reimbursed amount is checked. When entering this information into TurboTax 2019, I get the statement "None of the long term care payments are taxable", yet TurboTax calculates a tax owed of $1,909. Is this a glitch in the program, or am I entering the data incorrectly?  

[JohnB5677]

I see that the distribution was $17,082.  Was the hospital expense $41,000?  Or was it $83,000?  In either case none would be taxable.

Did you enter the medical expense (Gross paid - Reimbursement) Under Medical Expenses?