Form 1099-LTC reports benefits paid from a Long-Term Care (LTC) insurance contract or accelerated death benefits paid under a life insurance policy.
The following information is reported on Form 1099-LTC:
- Box 1: The portion of gross long-term care benefits paid during the year. Check Box 4 to determine whether the contract is considered a qualified long-term care insurance contract.
- Box 2: The amount of any accelerated death benefits paid.
- Box 3: Indicates whether benefits were paid on a per diem basis (a fixed daily amount) or on a reimbursement basis (based on actual expenses incurred).
- Box 4: Shows whether the policy is a qualified long-term care insurance contract.
- Box 5: Indicates whether the insured individual was chronically ill or terminally ill.
Qualified Long-Term Care Insurance Contracts
Generally:
- Long-term care insurance contracts issued after December 31, 1996 must meet the requirements of IRC Section 7702B, including certification that the insured is chronically ill, to be considered qualified.
- Contracts issued before January 1, 1997 are generally treated as qualified if they met the applicable state law requirements when issued.
Where Do I Enter My Long-Term Care Insurance Contract Information?
If you have a qualified long-term care insurance contract, enter your information by following these steps:
- Go to the Federal section.
- Select Deductions - Select My Forms.
- Open Adjustments to Income.
- Select MA MSAs, Archer MSAs, and Long-Term Care Insurance Contracts.
- Scroll to the Long-Term Care Insurance Contracts section and enter the information from your Form 1099-LTC.