Money from Long Term Care Insurance

[Serendipity2]

When I get money to pay for services I need from Long Term Care Policy, will I have to report that as income? 

Will I be tax on that?

Thank you

[NateTheGrEAt]

Hi @Serendipity2 and thanks for writing in with your question today! 

Check out this discussion from our forums which I believe will be helpful in answering your question: 

When is long term care insurance reimbursement considered income? (intuit.com)

I hope you find this information relevant. Have a great day!

[mbpeddie]

No, Tax qualified Long- Term Care Insurance benefits come to you tax free. Insurance companies that pay long term care insurcance benefits are required by the IRS to provide claimants with a 1099 LTC.

https://www.irs.gov/forms-pubs/about-form-1099-ltc

Follow these steps to enter it in Turbotax:

ou'll receive Form 1099-LTC if you got money from long-term insurance or life insurance under an accelerated death benefits clause.

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.
4. Follow the instructions. If you need Form 1099-LTC we'll fill it out for you.