Form 1099-LTC: Long-Term Care and Accelerated Death Benefits

Form 1099-LTC is an Internal Revenue Service (IRS) document used to report long-term care (LTC) benefits and accelerated death benefits received by taxpayers.

What is a 1099-LTC?

  • Issued by insurance companies, government entities, and viatical settlement providers.
  • Reports payments made under qualified long-term care insurance contracts and for accelerated death benefits.
  • Typically mailed in January for the previous tax year.

What are Long-Term Care Insurance Contracts and Accelerated Death Benefits?

A. Long-Term Care Insurance: Provides coverage for expenses incurred due to chronic illness requiring long-term care services (nursing home, assisted living).

B. Accelerated Death Benefits: A life insurance rider that pays out a portion of the death benefit while the insured is still alive, typically when terminally ill or chronically ill.

Who Receives a 1099-LTC?

  • The insured person named on the long-term care policy.
  • The policyholder, if different from the insured.
  • The insured for informational purposes only, if they are not the policyholder.

What to Do with Form 1099-LTC?

Review the Information: Carefully examine the amounts reported in each box on the form.

Compare with Records: Match the information on the 1099-LTC with your own records of long-term care expenses or accelerated death benefits received.

Tax Preparation: Use the form to report the information on your tax return. It helps ensure the accuracy of your tax filing.