Should I be required to pay taxes on payment received for surrendering my long term care certificate. The policy was "Tax Qualified".

[us096760]

I was told by the provided that I would not be receiving a 1099 since the policy  was tax qualified.

[RobertB4444]

No, tax qualified long term care benefits are not considered taxable income.

@us096760 

[donnasmallory]

Received a payment for surrendering LTC policies.  Company reported on a 1099MISC.  There was a tax benefit of only $2909 during the 22 years the policy was in force.  Where do I enter an adjustment for income received that is not taxable?

[DawnC]

Enter a negative amount in Other Reportable Income.   If you need to report income (or an adjustment) not on a tax from, you can enter it in the Other Reportable Income section of TurboTax.   Follow the path below to get to that entry spot in TurboTax.   All you need to enter is the amount (negative; -2909) and a description.  

• Personal Taxes/Federal Taxes -  depending on what version you are using  >>
• Personal Income/Wages & Income  >>
• Less Common Income - last section  >>
• Miscellaneous Income 1099-A, 1099-C  - last section in the list  >>
• Other Reportable Income - last item in miscellaneous

The surrender of an insurance policy or endowment contract for its cash surrender value, as distinguished from an exchange of policies or contracts, results in taxable income where the amount received on surrender exceeds the premiums or consideration paid.  If you are receiving back the premiums you paid in, this is not taxable unless you have taken this premium as a tax-deductible medical expense in previous tax years.    @donnasmallory