Taxpayer recieved a 1099-LTC that shows 30k in Box 1, Reimbursed amount in box 3. They checked with the insurance company to confirm thet the policy is NOT a qualified contract. Is any of the amount they recieved taxable? I have not been able to find a clear answer. I know if it is a qualified contract and it was for reimbursement, then it isn't taxable and doesn't even get reported on the tax return. But what if it is Non-qualified?
I appreciate any help or reference to a clear answer.
Best Answer Click here
Nontaxable to the extent used for long-term care expenses.
P.S. Look at the form. there may be a daily limit. I only see this about once a year.
Nontaxable to the extent used for long-term care expenses.
P.S. Look at the form. there may be a daily limit. I only see this about once a year.
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