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You must get a 1099 based on interest the LTC policy has produced. You should not be paying on the premiums you paid, they were already taxed.

I get a 1099 from Prudential too for shares my Dad received when he had an Insurance policy with them. I receive dividend payments quarterly from them. My Mom had 2 small policies with them totaling 7k. Her dividends rolled over and she had an additional 8k on the policies. She probably received a 1099 yearly for those dividends.

If you do not receive a 1099, then I don't see where you would owe anything for taxes. But would not hurt to ask your tax man or CPA. 1099s have to be out by Jan 31st. So maybe just wait till then to see if u receive a 1099.
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From the internet:

"Are Long-Term Care Benefits Taxable? - Center for a Secure Retirement
https://www.centerforasecureretirement.com/Posts/Are-Long-Term-Care-Benefits-Taxable
Are payments from long-term care insurance taxable? - InsuredAndMore.com
https://insuredandmore.com/are-payments-from-long-term-care-insurance-taxable
Are Benefits from a Long-Term Care Insurance Policy Taxable?
https://www.ltcnews.com/resources/faq/reporting-benefits-from-a-long-term-care-insurance-policy-to-the-irs
Generally not taxable"

Long-term care insurance payments apparently are not usually taxable. However, you need this answered by an EXPERT at tax time, as this is something that you cannot afford to be wrong about. Doctors are for medical questions, and attorneys are for legal. You need a good CPA to answer you. Best of luck.
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Yes, you need to talk to CPA...but but I did my mother's taxes myself so just passing this on:
As POA, I receive from our LTC insurance company (eg Prudential ) a 1099-LTC form each year, indicating how much she was reimbursed for that year. When filing taxes (I use TurboTax), there is an area for reporting that form. In our case my mother's income was so limited it was offset by the medical expenses so it didn't affect anything in terms of paying taxes. But you are issued a 1099-LTC form if directly reimbursed.
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My understanding is that taxability is state-dependent. For PA, I found this article written by the PA Dept of Revenue saying they are NOT taxable: https://revenue-pa.custhelp.com/app/answers/detail/a_id/1472/~/do-i-have-to-pay-income-tax-on-the-benefits-from-my-long-term-care-insurance. Good luck!
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olderthandirt99: Pose this question to a certified public accountant.
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Confusing comments. If long term care insurance was purchased, and used, how was taxes paid on the "insurance" money taken out (to pay bills, etc )? From my knowledge, when I purchased long term insurance, then used long term care insurance $$ on my demented husband's expenses, I DID NOT have to "put in any of my own money", except to start the policy, and pay premiums. Soooo, if you "take money out of the policy to pay expenses", then it may be taxable, unless the policy so states the money disbursed from the policy is not taxable. Read every word of the fine, fine print of the policy, take notes, then consult a tax advisor on this if the issue is still not clear. I believe I included this in that year's tax preparation. I don't remember the issue when my husband died. Get advice from a tax consultant, in writing, and put that with the policy. When you take money out of a policy, you get a statement; all money processed is accounted for, to my knowledge. It shouldn't just be a "check" with no accountability shown on the statement. Remember, if from the "policy" you are taking out any amount, what is that money of the policy, is that "money you paid taxes on already), or is it money from the policy, on which you already paid taxes on, or is it money your premium paid for, but more than what you put in. Siimple thought: If I have a policy that pays me insurance for long term care, and my premiums are $100 a month for LTC, but I take out $500, the $500 may be taxable. or at least $400. Read the policy, and consult with a tax advisor. Seems to me if you get more than you "earned", then what you get may be taxable. But, then, I'm not an accountant or bookkeeper, so consulting a tax advisor may be the best thing to do,
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If I recall correctly, most long term care insurance that reimburses the insured for covered expenses isn’t taxable income.

The less common “indemnity” insurance that pays a daily amount without requiring documentation on what it is spent on may be taxable if the deductible expenses are less than the payouts.
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Taxes might be exempted for LTC benefits, but you need to speak to a tax accountant to answer your question.
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If your talking about LTC insurance, you already paid taxes on that money.
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Insurance payout?

Medicaid benefits?

Tell us what kind of LTC benefits you are thinking of.
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