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Peter, Financial Advisor
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Experience:  Masters of Professional Accountancy and Certified Financial Planner
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Do I claim as income LTC payments that went to my caretakers

Resolved Question:

Do I claim as income LTC payments that went to my caretakers for which they received a 1099 from my insurance company, but for which I also received a 1099? The caretakers will be paying tax on this money. The IRS website says that only one party can issue the 1099 for the same work. I did not give my caretakers 1099s, because the insurance company already did.
Submitted: 5 years ago.
Category: Finance
Expert:  Peter replied 5 years ago.

Peter :

Long term care benefits are only taxed to you to the extent that they exceed $250 per day. If the payments were less than $250 per day they are not taxable. You do need to report the amounts paid to you, but they are not taxable. Almost all LTC policies are tax qualified meaning the benefits are not taxable.

Peter, Financial Advisor
Category: Finance
Satisfied Customers: 58
Experience: Masters of Professional Accountancy and Certified Financial Planner
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