1099-LTC showing taxable, is it an error?

[user17669592079]

Hello and thank you in advance for guidance, it is appreciated,

My dad received a 1099-LTC for 2024 (and we will for 2025) in the amount of around $73k.

Box 3 is marked "per diem", however, we did not receive a per diem. He was only reimbursed approved expenses which included CNA's, RN's, and then eventually, in 2025, a memory care facility.

His LTC covered up to $287 a day, but some days we spent a lot more and others, less.  We were only reimbursed for approved expenses, not the same amount every day no matter what we spent.

Box 4 is check as qualified contract. 

On my parents return for 2024 the $73k is shown as income on line 8 of 1040. 

QUESTION: Do I need to contact the LTC Co and ask for a corrected 1099-LTC, enter a reimbursement amount somewhere, a form to explain it's reimbursement, subtract the reimbursement from the income somewhere, or is this correct?

[Mike9241]

Qualified Long-Term Care Insurance Contract - benefits are not taxable.  Since box 4 is checked you have nothing to report. 
A contract issued after 1996 is a qualified long-term care
insurance contract if it meets the requirements of section 7702B,
including the requirement that the insured must be a chronically
ill individual (see Chronically Ill Individual, later). A contract
issued before 1997 is generally treated as a qualified long-term
care insurance contract if it met state law requirements for
long-term care insurance contracts and it has not been materially changed.

[user17669592079]

Thank you, I spoke to the LTC Co today and they are sending corrected 1099-LTC.