Technical topics regarding tax preparation.
3-Jul-2020 11:34am
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Does TP need to file a tax return if she gets a 1099-LTC and social security in this situation?
Obviously, she doesn't need to file with just her social security $18600 and even the $42000 from box 1 "gross long-term care benefits paid" as a "Reimbursed amount" from a "Qualified contract" is negated by the $53000 nursing home bill.
Obviously, nothing is taxable but just not sure if there's a requirement to file to show the 1099 amount was used to pay nursing home bill.
3-Jul-2020 1:07pm
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Obviously, nothing is taxable. Why not? Did employer pay for the LTC policy? Did TP get a medical deduction for the LTC premiums or the actual medical expenses in a prior year? See section 104(a)(3) and reg. 1.104-1(d).
3-Jul-2020 4:27pm
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The taxable or not taxable amount gets shown and computed on Form 8853.
Schenckdmm - I don't know the answer to your question but I did just file a return for a now deceased client with $137K on 1099-LTC. $4,300 taxable LTC benefits, $9,400 AGI and zero taxable income overall on the 1040. She also had social security benefits and some investment income. I figured this was easier and cheaper for her son than dealing with IRS inquiries later.
4-Jul-2020 7:51am
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8-Jul-2020 8:32pm
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Besides, you would want to start running the statute of limitations. I would file.
Maria U. Ku, CPA
Oakland, CA
Return to Taxation
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