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Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2355
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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My Husband is in a long term care facility, called Sunrise.

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My Husband is in a long term care facility, called Sunrise. He has an insurance policy for long term care. Each month I receive payment from the insurance policy at a daily rate of 285 per day. The sunrise facility charges 175 per day. The 100 difference I use to pay for his other daily expenses, like food, clothes, entertainment, travel etc. Is this taxable income - this 100 dollar per day. This comes to about 36k for the year (365 days * 100)?

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

Thank you for your question, and thanks for using JustAnswer.com

MyVirtualCPA :

This amount is not included in your taxable income, as the total payment from your long term care insurance policy is below the allowed limit.

MyVirtualCPA :

So, rest assured this $36,000 per year is tax free.

MyVirtualCPA :

Please let me know if you need anything additional. If not, please rate my response "excellent" so that I may receive credit for assisting you today.

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Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2355
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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