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Level 2
May 19, 2020
Question

Long Term Care reimbursements

  • May 19, 2020
  • 3 replies
  • 20 views

My client got a 1099ltc with $40,000. as amount in Box 1. In box 3 the reimbursed amount box is checked. Company sent her letter stating she cancelled policy and made premium payments of $30,000. Is the didderence taxable and if so how do I report it? (will not go on Form 8853)

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3 replies

Just-Lisa-Now-
Intuit Community Champion
May 19, 2020

DID it reimburse for medical expenses or not?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 2
May 23, 2020

No it did not reimburse for any expenses. It was reimbursed for a cancelled policy.

Level 2
May 26, 2020

No it was not a reimbusements for espenses. It was a return of premiums paid totalling $30,000. What about the excess $10,000. Is it taxable?