Jump to Long-Term Care

[joturnage]

The TurboTax Instructions for help with a 1099-LTC say this:

Here's how to enter your 1099-LTC into TurboTax:

1. Open (continue) your return if it's not already open.
2. Search for long-term care and select the Jump to link.
3. On the Any Long-Term Care Contracts? screen, answer Yes to the first question (and Yes to the second question if it applies, otherwise No) and select Continue.

When I select the Jump To link I go NOWHERE.  I tried it numerous times. No matter what I do the Jump to link doesn't do anything.

I need some help pretty please.

Thanks.

[Critter-3]

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses> look for health Ins>LTC

[AnnetteB6]

To enter your information about a Long Term Care contract distribution reported on Form 1099-LTC, try using these steps to get started instead of the 'jump-to' link:

• Go to Income, then scroll to the bottom of the section to find Less Common Income
• Scroll down to Miscellaneous Income, 1099-A, 1099-C and click Start or Update
• Scroll down to Long-term care account distributions (Form 1099-LTC) and click Start or Update
• Then follow step 3 that was referenced in your question to get started

@joturnage 

[Critter-3 · Accepted solution]

If your LTC distributions do not exceed your expenses you do not need to even enter the the 1099-LTC form at all... just ignore it.

Do payments from a LTC plan count as taxable income?

Payments from a LTC insurance plan are considered taxable income, but you may be able to exclude that income from your return.

But: If your employer makes any contributions toward your LTC premiums, the contributions must be reported as income on your return.

To exclude payments from your taxable income, your plan must meet a few requirements:

• You, your spouse, or dependent receiving care must be considered chronically ill by a licensed health care practitioner.
• Your plan must only provide coverage for long-term care and must be renewable.
• Your plan must not provide cash or have a surrender value or money that is pledged, assigned, or borrowed.

Check with your HR department or LTC provider to make sure your plan meets these requirements.

How much can I exclude if I’m eligible?

Generally, payments for actual paid expenses can be fully excluded. However, if payments are made regardless of expenses paid, then there’s a limit. If you’re receiving payments on a periodic or per diem basis, the limit is $380 for each day for the 2020 tax year. If you receive more than $380 for each day of long-term care, you may be eligible to deduct the excess. You can deduct any excess over $380 as a medical expense if you meet the AGI floor requirement for medical deductions.

[GayleS03]

1099-LTC shows a gross amount ($4k) in Box 1, "Reimbursed Amount" in Box 3 and the "Qualified Contract" is checked in Box 4. The amount was reimbursement for at home caregiving costs for a chronically ill person.  (The person meets the definition although the box is not checked on the 1099 LTC). From 8853 instructions and all the comments I've found here in the community and elsewhere, it seems clear this income is not "taxable", but I can't find a clear answer as to whether this reimbursement should even be entered on the tax return (into Turbo Tax, etc.). If it should, where? TIA

[KrisD15]

You can go through the interview to confirm the payments are not taxable.

Please follow the instructions that were given above. 

• Go to 
• Wages & Income
• All the way down to "Less Common Income" 
• and then all the way down on that list to "Miscellaneous Income, 1099-A, 1099-C"   START
• Fifth one down on that list "Long-term care amount distributions (Form 1099-LTC)   START
• Answer the questions about the distribution