I HAVE A QUESTION ABOUT FORM 1099-LTC. WHERE DOES THE FIGURE FROM THIS FORM GO ON FORM 1040? THIS IS THE AMOUNT PAID BY INSURANCE COMPANY TO THE INSURED, COPY B FOR POLICYHOLDER, GROSS LONG-TERM BENEFITS PAID.
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I HAVE A QUESTION ABOUT FORM 1099-LTC. WHERE DOES THE FIGURE FROM THIS FORM GO ON FORM 1040? THIS IS THE AMOUNT PAID BY INSURANCE COMPANY TO THE INSURED, COPY B FOR POLICYHOLDER, GROSS LONG-TERM BENEFITS PAID.
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Kathleen
You will need to complete section C of Form 8583 - see the following link:
https://www.irs.gov/pub/irs-pdf/f8853.pdf
The following is what needs to be completed on form 8583 and closely matches the line items on the form:
Section C - Long-Term Care (LTC) Insurance Contracts
The Taxpayer Form 8853 worksheet should be used if the taxpayer is the policy holder, and the Spouse Form 8853 worksheet should be used if the spouse is the policy holder. The income must be reported by the policy holder even if the insured person is not a person who is part of this tax return. |
|
Policy Holder's Information |
Enter the name and social security number of the taxpayer or spouse, who is the policy holder of this LTC insurance contract. |
Line 14a |
Insured Person
Note: The insured person may be the policy holder, a person entered as the taxpayer or spouse, a person entered as a dependent or other cared for, or a third party who is not entered on the return at all. |
Line 15 |
Other Persons Receiving Payments
If "Yes" has been selected and the only payments received were accelerated death benefits paid for a terminally ill person, complete Line 19 only. If "Yes" has been selected because payments were received on behalf of more than one insured, see Multiple Payees under the IRS 2013 Instructions for Form 8853 for further directions. |
Line 16
|
Terminally Ill Insured
Checkbox |
Line 17 |
Gross LTC Payments These amounts can be found in box 1 of Form 1099-LTC when the "per diem" box 3 is checked. |
Line 18 |
Qualified LTC payments Caution: If the insured has more than one LTC period, the taxable amount of the payments received must be calculated separately during each LTC period. To do so, the return must be mailed with additional Forms 8853, by completing lines 18 through 26 on separate Sections C for each LTC period. Enter the total on line 26 from each separate Section C on the Form 8853 that the taxpayer attaches to the taxpayer's tax return. See the instructions for line 21 on this page for the LTC period. |
Line 19 |
Accelerated Death Benefits These amounts can be found in Box 2 of Form 1099-LTC. Include only amounts the taxpayer received while the insured was a chronically ill individual. Do not include amounts the taxpayer received while the insured was a terminally ill individual. If the insured's condition changed from chronically ill to terminally ill during the tax year, only include on line 19 payments received before the insured was certified as terminally ill. |
Line 21 |
Number of days The taxpayer may choose from one of the two methods below unless there were multiple payees as explained above. Method 1 - Contract Period Caution: If the taxpayer chooses this method for defining the LTC period(s) and different LTC insurance contracts for the same insured use different contract periods, then all such LTC contracts must be treated as computing benefits on a daily basis. Method 2 - Equal Payment Rate Example: The taxpayer has two LTC periods if the insurance contract computes payments at a rate of $175 per day from March 1, 2010 through May 31, 2010, and then at a rate of $195 per day from June 1, 2010 through December 31, 2010 . The first LTC period is 92 days (from March 1 through May 31) and the second LTC period is 214 days (from June 1 through December 31). The taxpayer may choose this method even if the taxpayer has more than one qualified LTC insurance contract covering the same period. Example: The taxpayer has one insurance contract that pays $100 per day from March 1, 2011 through December 31, 2011, and the taxpayer has a second insurance contract that pays $1,500 per month from March 1, 2011 through December 31, 2011. The taxpayer has one LTC period because each payment rate does not vary during the LTC period of March 1 through December 31. However, the taxpayer has two LTC periods if the facts are the same except that the second insurance contract did not begin making payments until May 1,. The first LTC period is 61 days (from March 1 through April 30) and the second LTC period is 245 days (from May 1 through December 31). |
Line 22 |
Qualified LTC Services Qualified LTC Services |
Line 24 |
Reimbursements for Qualified LTC Services This information can be found in Box 3 of the Form 1099-LTC. Do not include any reimbursements for qualified LTC services the taxpayer received under a contract issued before August 1, 1996. However, the taxpayer must include reimbursements if the contract was exchanged or modified after July 31, 1996 to increase per diem payments or reimbursements. |
For more information on Form 8853 see the following:
https://www.irs.gov/instructions/i8853/ch01.html#d0e65
Victor Santucci, EA
Kathleen,
Do you have any other questions?
Victor Santucci, EA
Kathleen,
What is good time to call?
Please povide me the information on Form-1099-LTC. Give the amount in each box and what boxes have a check mark
Victor Santucci, EA
Kathleen,
I will call you tomorrow - please provide me a time to call.
Victor
Ryan Parker, EA
Tax Preparer
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