Discussion:ANOTHER 1099-LTC QUESTION
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Discussion Forum Index --> Tax Questions --> ANOTHER 1099-LTC QUESTION
| 23 March 2006 | |
| Client died in August 2005. She recieved 1099-LTC box 1 gross benefits paid $ 34040.00 box 3
reimbursement amount is marked yes box 5 chronically ill is marked yes. Form 8853 page 2 section C says to enter Gross LTC payments recieved on a per diem or other periodic basis. If the 1099-LTC says it was a reimbursed amount is it going to be taxable and does form 8853 have to be filled out? Client paid $34800.00 to household employees so that she would not have to go to a nursing home. Am really confused as to what to do with the 1099-LTC | |
| 23 March 2006 | |
| Some reading for you: Pub 502, IRB 97-21, Sec 7702B.
Generally amounts received from LTC's as reimbursement for treatment of a "Chronically Ill individual" are not includable in gross income. In this case, it looks like like the net of what the client paid ($760) is deductible as a medical expense. | |
| 23 March 2006 | |
| Thank You so much for the info. I was having a hard time with the form saying "per diem" and the 1099 with reimbursement. It can really be confusing. Thank You. | |
