Need help with 1099-ltc

[Vinnyfan]

I am doing my mother's taxes and I received a form in the mail that reads "1099-LTC INFORMATION RETURN".

Do I enter this into Turbo Tax anywhere? I can't find a reference to this specific wording anywhere.

[Anonymous_ · Accepted solution]

See https://ttlc.intuit.com/turbotax-support/en-us/help-article/small-business-processes/enter-form-1099...

You'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.

If you're using TurboTax Free Edition, this is not covered, so you'll be prompted to upgrade to Deluxe.

[Vinnyfan]

Thank you for your reply. I'm confused why my return has the words "INFORMATION RETURN" after the 1099-R. Does that mean anything?

And what does accelerated death benefit clause mean?

[Anonymous_]

Did you receive a 1099-R or a 1099-LTC (as you stated in your original post)?

Issuers can submit substitute forms (in the same format) and the information is for your use in preparing your income tax return. Also, if you received a 1099-LTC, the benefits could very well be tax-free.

[Vinnyfan]

I'm sorry. It was an LTC.

[JulieS · Accepted solution]

"Information return" is an IRS term applied to forms that contain tax information that is required to be reported to the IRS. 

Information returns include Forms W-2, W-3 and W-2G, as well as all 1098 and 1099 series forms. 

"Accelerated death benefit clause" is an insurance term for a clause in an insurance policy that will begin paying death benefits prior to the death of the insured. 

You qualify for accelerated benefits if you contract a terminal illness and are expected to die within two years. 

You also qualify if you've been diagnosed with an illness that will reduce your expected lifespan, if you need an organ transplant because of illness or if you are in hospice long-term care.

@Vinnyfan 

[Vinnyfan]

Thank you very much for your reply. That answers all my questions clearly and I think I understand what I need to do now.

Lynne

[Roystersb]

Where is the JUMP TO link?

[BrittanyS]

Jump to links can be found using the search function.  To find the link for a 1099-LTC, follow these steps:

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.

@Roystersb 

[Roystersb]

Hello @BrittanyS  - 

I understand the directions, but there is no JUMP TO link.  I search for 1099-LTC using the search (magnifying glass) icon.  I get the same text, but there is no link ... the words JUMP TO in the text you quote are not a link. 

I have the Deluxe version but I haven't yet paid the fee.  Could this be why the LTC jump link isn't active? 

Thanks, S

[Anonymous_]

---

@Roystersb wrote:

I have the Deluxe version but I haven't yet paid the fee.  Could this be why the LTC jump link isn't active? 

---

The link does not work for me either and I have a test copy of Home & Business.

Try clicking the Start (or Update) button to the right of Miscellaneous Income, 1099-A, 1099-C in the Less Common Income section.

Then, on the following screen, click the Start button to the right of Long-term care account distributions (Form 1099-LTC).

@Roystersb 

[Roystersb]

Great minds think alike! 

I got there like that, through the Federal Taxes >> Wages & Income >> Less Common Income >> Miscellaneous Income where I could (finally!) choose Long-term care account distributions (Form 1099-LTC).  

Thanks, @Anonymous_ and @BrittanyS 

[there is no jump link]

there is no jump to link

help

[DoninGA]

@there is no jump link 

Click on Federal Taxes (Personal using Home & Business)

Click on Wages & Income (Personal Income using Home & Business)

Click on I'll choose what I work on (if shown)

Scroll down to Less Common Income

On Miscellaneous Income, 1099-A, 1099-C, click the start or update button

On the next screen - On Long-term care account distributions (Form 1099-LTC), click the start or update button

[there is no jump link]

Thank you DoninGA very much!