What is Form 1099-LTC?
Form 1099-LTC is used to report any long-term care benefits, including accelerated death benefits. Payers may include companies, governmental units, and viatical settlement providers during a particular tax year. Insurance companies that pay long-term care insurance benefits or life insurance under an accelerated death benefits clause are required by the IRS to provide the filers with Form 1099-LTC that reports the tax payments made. Payments that are from long-term care insurance contracts are generally excludable as taxable income.
A viatical settlement provider is an individual (or company) that pays the same kind of benefits to a person in exchange for being named the beneficiary of that person's life insurance policy.
“Long-term care benefits” May indicate:
- Any payments made under a product that is advertised, marketed, or offered as long-term care insurance (whether qualified or not);
- Accelerated death benefits (excludable in whole or in part from gross income under section 101(g)) paid under a life insurance contract or paid by a viatical settlement provider.
1099-LTC forms must be mailed to recipients by February 15 and e-filed with the IRS by March 31 each year.
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