Long Term Care Benefits Paid

Forum|Forum|6 years ago
February 27, 2020
3 replies
0 views

I may be overthinking this.

Client is now receiving her Long Term Care benefits (reimbursement amount, so nontaxable).

Question: When I total all her medical expenses do I need to then subtract the dollar amount of benefits received from LTC from her total medical expense to get to her medical deduction??

Then of course I would apply the 10% reduction on Schedule A.

I have tried hard to find an answer, but no definitive answer seems to be available.

Thank you, Pattg2

ProSeries Professional

This topic has been closed for replies.

Best answer by sjrcpa

Yes reduce her deductible medical expenses by the amount received from the LTC policy.

sjrcpaAnswer

Level 15

Yes reduce her deductible medical expenses by the amount received from the LTC policy.

The more I know the more I don’t know.

Just-Lisa-Now-

Intuit Community Champion

YOU dont apply the 10% limitation (and its not 10% anymore), the program will make the adjustment for the 7.5% limitation as required...you input the full amount of deductible medical expenses.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

BobKamman

Level 15

I would subtract the LTC benefits from the LTC costs only. Also, I think there's a $370 daily limit on nontaxable benefits. I haven't seen any returns where benefits exceeded costs, but I have a couple clients who are paying on two policies (not sure why) so might profit from dementia or other ailments. Also, policies that cover in-home nursing care might pay more than $11K/month.

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