1099-LTC: How to enter in Proseries?

[dhoyt]

Hi all. I have a 1099-LTC for a client with about $30k in box 1. Box 3 is checked as reimbursed amount and box 4 is checked as qualified contract. So my understanding as I've researched it (I havent dealt with many LTCs)  is it is all not taxable. The 8853 pg 2 says to enter amounts that were paid on a per diem basis. Nowhere can I see any place to list the amount if it is all reimbursed. Does it even need to be entered on the tax retrun if it is all reimbursed amount?

Thanks in advance for any help you can provide.

[Camp1040 · Accepted solution]

Only enter if per diem checked. In other words, no entry required.

[Just-Lisa-Now-]

when theyre marked Reimbursed, I dont enter them anywhere, I just make sure therye not double dipping on reported medical expenses on Sch A.

Thats how the instructions on the backside of the form I read 20 years ago told me to do it.

[jeffmcpa2010]

Hey Lisa (and anyone else who wants to chime in)

(not in any way questing your comment - different situation)

Just wondering what your thoughts If it were a per diem contract, and after completing the form it is all non taxable, what do you think is correct so far as deducting medical expenses, I researched it quite a bit a couple of years ago for a family member and could not find any source that told me i could not deduct the medical if LTC was per diem. Never knew if I was missing something.(even though it did not seem logical)

[Just-Lisa-Now-]

If one washes out the other then I dont worry about it, per diem doesnt necessarily mean it was all used for medical though, so there cold be some taxable income left......but honestly, I dont think IRS cross matches these at all anyhow.

[Camp1040]

Never had a per dien LTC form, but this was on google so it must be true. (sarcasim)

For "Per diem"/"indemnity"/"cash benefit" payments where the full benefit is paid regardless of any expense incurred, the benefits are tax-free up to $390 per day ($11,862 per month) in 2022 even if actual expenses are less.

[jeffmcpa2010]

I agree with camp on the benefit being exempt, regardless of expenses so long as benefit is below the limit. As it is unrelated to expenses incurred they seem to be allowable also.

could be a regional thing, I don't see many but the ones I do see are predominantly per diem

[dhoyt]

Thanks all for the replies. I appreciate the help