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Level 1

Question

1099 LTC

Forum|Forum|5 years ago
March 13, 2021
1 reply
3 views

Are LTC and accelerated Death benefits taxable? We paid more for the LTC insurance premiums than the reimbursed amount.

Level 15

Proceeds from Form 1099-LTC and accelerated death benefits are generally not taxable. You will not have to enter any information from your form unless the amount is taxable.

The IRS says generally, amounts received under a qualified long-term care insurance contract are excluded from your income, except for periodic payments made without regard to the actual expenses.

Amounts paid as accelerated death benefits are fully excludable from your income if the insured has been certified by a physician as terminally ill. Accelerated death benefits paid on behalf of individuals who are certified as chronically ill are excludable from income to the same extent they would be if paid under a qualified long-term care insurance contract.

Related Resource:

Form 1099-LTC

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