1099-MISC Entry to exclude LTC Premiums from Surrender Value

[bpynn]

Previous guidance on entering proceeds from LTC Policy surrender doesn't work.

Previous guidance was to make tywo entries, 1 for amount on 1099_MISC, second with negative ammount representing amount paid in policy premiums. TTax doesn't carry the difference forward.

[bpynn · Accepted solution]

I finally resolved the problem!

After creating both entries (1 actual amt on 1099-Misc, 2nd with negative amt representing total premiums)

you need to open the "1099-MISC Wks" in the FORMS tab and in the Box 3 section click on "Other Income" box for both the actual and the negative entries. (If both you and your spouse got 1099-MISC there would be four entries)