Form 1099 LTC

[billt]

If client receives a form 1099ltc, does he have to file a form 8853?

[kathyc2]

Instructions for 8853 has a good flow chart to determine that.

[kamckinley]

Sorry if this is a dumb question, but I'm working on Form 8853 for a client (first time I have had a client with LTC benefits) and it doesn't seem to be calculating correctly.

Client received a 1099-LTC for $20,600. The Reimbursed amount (box 3) and Qualified contract (box 4) boxes were both checked.

When I complete 8853, do I enter the benefits on line 18 Amount from qualified LTC insurance contracts or Line 24 Reimbursements received for qualified LTC services. If I enter on both lines, it looks like she received $41,200 and causes some of the benefits to be taxable.

I believe I should probably use line 24 since the reimbursement box was checked, but I'm tired and would like a second opinion to make sure I'm doing it right.

Thanks.

[kathyc2]

Kam, see the flowchart in instructions. If not on per diem basis or accelerated death benefits don't complete form. Line 18 is from line 17 which states to enter payments received on a PER DIEM basis.

[kamckinley]

Kam, see the flowchart in instructions. If not on per diem basis or accelerated death benefits don't complete form. Line 18 is from line 17 which states to enter payments received on a PER DIEM basis.

Wow, I must be tired. I read the instructions several times and missed that. Thank you!