1099 LTC- how report?

Technical topics regarding tax preparation.
#1
taxcpa  
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Client is in a nursing home with expenses exceeding $100K Received a 1099 LTC reporting payments of $45K.

Plan is a qualified plan and payments are perdiem. Reporting this on 8853 and using 365 as the days (they were in the nursing home all year) causes the $45K to be excluded from income.

Question is whether the amount should be reported as a reduction of medical expenses on Schedule A?
 

#2
sjrcpa  
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Yes
 

#3
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Well, if it is required to be reported as a reduction of medical expenses on Schedule A, sounds to me like it is included as income. And not excluded. Hmm.
 

#4
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The medical expenses were 100k; received payments of 45k; take medical deduction for 55k.
 

#5
taxcpa  
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Solved this one 5 years ago.
 


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