Hi all, I need a sanity check. A couple of years ago, one of my MFJ clients began receiving 1099-LTC forms from LTC insurance. The have all been for reimbursements. Contract is qualified and neither chronically ill or terminally ill box is checked.
Everywhere I read, this is non-taxable income.
However, I can find no instruction that says these payments do or do not qualify as an Itemized Deduction Recovery. I would think that they do since I can find no statement or cite that specifically says they don't need to be recovered as income if deducted in the past. So I treated as a recovery and taxable income.
Can anyone provide a cite that indicates I did that wrong ?