Follow these steps to enter Form 1099-LTC Reimbursements on an individual (1040) return:
- Go to the Input Return tab.
- From the left of the screen, select Deductions and choose HSA/MSA/LTC Contracts (1099-SA, 5498-SA).
- Select L/T Care Insurance Contracts (8853).
- Locate the Long-Term Care Insurance Contracts (8853) section.
- If the policyholder isn't the taxpayer, mark the Spouse is policyholder checkbox. If the policyholder is the taxpayer, enter the following fields:
- First name of insured (defaults to policyholder)
- Last name of insured (defaults to policyholder)
- SSN of insured (defaults to policyholder)
- Mark any checkboxes that are applicable to your client.
- If the client received the 1099-LTC box 1 on a per-diem or periodic basis, use the Gross LTC payments received on per-diem or periodic basis field.
- Enter all applicable amounts, including the Portion of gross from qualified LTC insurance contracts.
- Enter the amount from Box 2 in Accelerated death benefits received (except terminally ill).
- Enter the amount from Form 1099-LTC in the Reimbursements received for qualified LTC services field.
- Box 3 shows if you paid the amount in box 1 or 2 on a per-diem basis or if it was a reimbursement of actual long-term care expenses. If the insured was terminally ill, this box may not be selected.
- Complete all other necessary entries for Form 8853.
