A taxpayer who is doctor certified as chronically ill due to alzheimers desease lives in a nursing home. Taxpayer receives ltc insurance proceeds to pay for nursing home costs, and also receives form 1099-ltc showing the box 1 annual proceeds. The 1099 qualified contract box is not checked. Are the proceeds taxable or excluded from income?
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Form 1099-LTC
Proceeds are taxable to the extent that the proceeds exceed the taxpayer's long-term care expenses, after accounting for any other insurance reimbursement
BMKBurton M. Koss
koss@usakoss.net
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The map is not the territory...
and the instruction book is not the process. -
Reporting
See Form 8853
BMKBurton M. Koss
koss@usakoss.net
____________________________________
The map is not the territory...
and the instruction book is not the process.Comment
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I believe that issue only comes into play when you are trying to deduct the premiums on Sche A. There is a limit on the amount you can deduct on 8853. For 2012, it is $310 per day. If benefits exceed that amount, there may be taxable income.Originally posted by KWF View PostLast edited by Burke; 03-23-2013, 05:51 PM.Comment
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