Client received a 1099 LTC due to going into the nursing home. The form 8853 need to be filled out or do I put the amount on the Schedule A with the remainder that the nursing home cost is $32,500. Confussed about deducting the rest of the nursing home or not? The benefit from the box 1 of $21,733 is not enough to cover the nursing home. Plus she withdrew from her investment fund to finish paying the cost but that is taxed - but it is the LTC that is used to pay for the nursing home.
Does anyone know how to handle this - show it on A as the $32,500 with subtracting the $21,733 or what?
Thanks
Does anyone know how to handle this - show it on A as the $32,500 with subtracting the $21,733 or what?
Thanks