Form 1099-LTC is an IRS form that helps individuals report long-term care (LTC) benefits and accelerated death benefits they’ve received in the previous year, including from providers such as insurance companies and governmental entities. Knowing the details of this form is an important part of filing taxes.
What is Form 1099-LTC?
Form 1099-LTC is an IRS document used to report long-term care and accelerated death benefits received in the last tax year. It is usually issued in January and is provided by insurance companies, governmental entities, and viatical settlement providers. Most of the payments listed are likely to be excludable from income, although per diem payments may have a maximum daily limit beyond which they become taxable. All 1099-LTC recipients should check with either their providers or the IRS with any questions regarding potential taxes due.
IRS Form 1099-LTC – Who Needs to Fill It Out?
Who Needs to Fill Out IRS Form 1099-LTC: Long-Term Care and Accelerated Death Benefits? You should receive a 1099-LTC if during the previous year you received long-term care benefits such as accelerated death benefits or had them received in your name. These forms are typically issued by insurance companies or governmental units. It is important to include your 1099-LTC with your tax return to determine any taxes you may owe. If you have questions, check with your provider or contact a tax professional for more information.
Step-by-Step: Form 1099-LTC Instructions For Filling Out the Document
Filling out Form 1099-LTC is a necessary step in reporting long-term care (LTC) benefits to the IRS. This form is typically issued in January for the previous year and should be received by anyone who received LTC benefits of any kind, including accelerated death benefits. Payers are typically insurance companies, governmental agencies, and viatical settlement providers. The form should include information such as gross benefits paid, tax year and account numbers, as well as the latest dates of certification. Understanding the terms and eligibility for excluding these benefits from income is essential. Those with questions should contact their providers and/or consult with a tax preparer.
Below, we present a table that will help you understand how to fill out Form 1099-LTC.
| Information Required for Form 1099-LTC | Details |
|---|---|
| Filling out Form 1099-LTC | A necessary step in reporting long-term care (LTC) benefits to the IRS |
| Typical Issuance Date | January for the previous year |
| Recipients of Form 1099-LTC | Anyone who received LTC benefits, including accelerated death benefits |
| Payers | Insurance companies, governmental agencies, viatical settlement providers |
| Information Included in the Form | Gross benefits paid, tax year, account numbers, latest dates of certification |
| Excluding Benefits from Income | Understanding the terms and eligibility for excluding these benefits from income |
| Seeking Guidance | Contact providers or consult with a tax preparer for questions |
Do You Need to File Form 1099-LTC Each Year?
You should receive a 1099-LTC if during the previous year you received long-term care benefits, including accelerated death benefits. These forms are typically issued in January and the payers are typically insurance companies, governmental units, or viatical settlement providers. Your 1099-LTC may list a large amount of benefits for which you may not necessarily owe taxes, depending on the type of benefit received, and other information is included on the form. To ensure you are compliant with the tax filing requirements, it is best to check with your provider or work with a tax preparer or expert.
Download the official IRS Form 1099-LTC PDF
On the official IRS website, you will find a link to download Form 1099-LTC, “Long-Term Care and Accelerated Death Benefits”. However, to make it easier for you, we are providing the link in our article which comes directly from the official irs.gov website! Click to download: Form 1099-LTC
Sources:
https://www.irs.gov/forms-pubs/about-form-1099-ltc
https://www.irs.gov/instructions/i1099ltc
