1099 LTC - Long Term Care Benefits

[GodFather]

Client was in a memory care facility for all of 2024.  His wife passed in January of 2024.  Son has POA.  Total cost of the memory care facility was over $144,000.  Client received benefits on form 1099-LTC amounting to $95,000. 

Have not dealt with this scenario frequently (thankfully).  I entered the expenses paid on Schedule A Worksheet, Line 6.  Where do I report the LTC benefits received?  Form 8853?  It should offset the medical expenses.  Not sure how to accomplish that.  

Appreciate any insight into this.  

[IRonMaN]

Form 8853 looks like the winning number for you.  If you click on the magnifying glass for medical on schedule A, there is a list of medical expenses and a box to report reimbursements.

[GodFather]

Thank you, Sir. 

[BobKamman]

What is checked in Box 3?  Per diem or actual reimbursed expenses?

[GodFather]

Box 3 shows "Reimbursed Amount" as checked.  

[Just-Lisa-Now-]

When its marked as Reimbursed, I dont include it anywhere at all, I just make sure Im not double dipping on Medical Expenses....once upon a time, long long ago thats how the instructions on the backside of the 1099LTC told me worked.

Per diem is different, they may have received LTC money that wasnt used for medical.

[BobKamman]

When I worked for IRS, I got a $300 Special Achievement Award for helping design the system used by monitors to check answers on the toll-free Taxpayer Service lines.  One of the error codes that was used most often was "Failure to Probe."

Just sayin'...

[George4Tacks]

Bob - That is open to so many responses, but I like staying on this forum.

[GodFather]

Lisa...wouldn't you show it as being offset against medical expenses?  This is how I documented it, based off Iron's suggestion.  I'll delete the 8853.

[Just-Lisa-Now-]

You could, no harm, no foul.

[IRonMaN]

I don't think any of that detail is submitted with the return anyway.  As long as your total deductible medical expenses don't include the reimbursed amounts you are good to go.  That detail makes it easy for data entry based on what the client gives you but that doesn't mean you have to use it.

[GodFather]

Thanks, IRON. 

[IRonMaN]

You betcha!