Long term care taxability question

[gordongovier]

My father-in-law passed away in 2024 and my mother-in-law is in long-term care. My wife is receiving payments from his long term care policy to take care of her. Are those payments taxable?

[LindaS5247]

Generally, benefits received from a tax-qualified long-term care insurance policy are not considered taxable income.

If you received a Form 1099-LTC you can enter it and TurboTax will determine if any of the Long Term Care payments you received are taxable in any version of TurboTax (other than the Online Free version).

You will enter the  Form 1099-LTC under "Wages & Income"  under "Less Common Income" as follows:

You can do this as follows using TurboTax Online:

1. Go to the "Wages & Income" section of TurboTax
2. Select "I'll Choose What to Work On"
3. Scroll down to "Less Common Income"
4. Select "Start or Update" next to Miscellaneous Income"
5. Scroll down to "Other Reportable Income "
6. Select "Start or Update"
7. Enter your income on the page that says "Other Taxable Income" 
8. Select "Continue"
9. Answer all of the follow-up screens.  

You can do this as follows using TurboTax Online:

1. Click on "Pick up where you left off"
2. Click on "Wages & Income" in the left panel
3. Click on "Less Common Income"
4. Scroll down to "Miscellaneous Income"
5. Scroll Down to "Other Reportable Income"
6. Click on "Start"
7. Follow the screens and answer all follow-up questions