Question 1

Are long-term care benefits taxable?

Accepted Answer

Per diem benefits above the IRS daily limit may be taxable. Benefits paid to reimburse actual long-term care expenses are generally not taxable.

Question 2

What are accelerated death benefits?

Accepted Answer

Payments received from a life insurance policy before the insured person dies, typically because of a terminal or chronic illness. These may be excluded from income.

Question 3

How do I report Form 1099-LTC?

Accepted Answer

Use Form 8853 to report long-term care payments and determine the taxable amount. Report any taxable amounts on your Form 1040.

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