A qualified LTC insurance contract is a contract issued:
- After December 31, 1996, that meets the requirements of section 7702B, including the requirement that the insured must be a chronically ill individual (defined later); or
- Before January 1, 1997, that met state law requirements for LTC insurance contracts at the time when and in the state where the contract was issued and hasn't been changed materially.
In general, amounts paid under a qualified LTC insurance contract are excluded from your income. However, if you receive Per Diem Payments. the amount you can exclude is limited. Refer to the 8853 instructions for more information.