1099-ltc

[bekzm]

Client has 3 1099-LTC total $65800 and only box marked on all 3 is reimbursed amount. I put that amount on line 21 but the nursing home and pharmacy $54705 and medicare is the $1199 so when put it on sch A the 2% does not exceed the $65800. So what am I doing wrong? Am I correct to show that she owes or not thinking this out. Maybe report it on line 21 front page and show the nursing home and rx and it will be little closer is taxed. Hate this time of problems to have. What is the proper way to report these. No other boxes marked. Tax some of it or not. Help

[BP.]

1099-LTC ... Tax some of it or not.

TTB 4-6- "Complete Form 8853 to determine taxable or excludable amount."

http://www.irs.gov/pub/irs-pdf/f8853.pdf

p. 2

It won't be difficult.

[bekzm]

Thank you

Thank you for your response. Did that and it shows yes some being taxable and logic tells me that some of it should be taxed but sometimes have to think out loud I guess. There are great people out there that help others so thanks again for directing me and helping me think.

[WhiteOleander]

If the "reimbursed" box is marked, then no reporting is necessary. The expenses have been paid dollar for dollar. If the "Per Diem" box is marked, then you have to fill out the form to show how much if any is taxable. Of course, reimbursed expenses cannot be claimed on Sch A.

[bekzm]

Thank you

Everything you read says that if the box is marked reimburse then it is not taxed but filling out the 8853 can be confusing like most IRS stuff lol. It just bothers me that 3 of them totaling the 65000 and expenses I have from the nursing home do not exceed that but with other medical bills - it probably is not hard to come to the other 18000. Late getting started with the IRS and now spring is here - the thinking cap is getting slower.

[dmj4]

1099-LTC Reimbursed Amounts

If the "reimbursed" box is marked, then no reporting is necessary. The expenses have been paid dollar for dollar. If the "Per Diem" box is marked, then you have to fill out the form to show how much if any is taxable. Of course, reimbursed expenses cannot be claimed on Sch A.

My clinet's 1099-LTC is for current year expenses that exceed the amount of the LTC. Medical deductions were not taken in a prior year for this reimbursement.

Is there nowhere to show the reimbursement even though it is not taxable? Years ago I put amount of line 21 with taxable amount of zero. It appears as if this can't be done and may not have been correct in the first place, but it was effective causing no letters or rejections.

I feel uncomfortable just ignoring the 1099-LTC. If others have sent returns without showing it anywhere with good results, please let me know.

Thanks!