Form 1099-LTC

What is Form 1099-LTC?

The form 1099-LTC is also known as the Long-Term Care and Accelerated Death Benefits. This form is sent to the taxpayer who received the LTC benefits. It does not matter whether you received it by yourself or in your name. The form also includes accelerated death benefits. The offer for such benefits usually comes from the companies that sell insurance or private insurers.

This type of benefit is crucial if you need to cover personal care and medical expenses, especially if you become chronically ill and can’t care about yourself anymore. The death benefits are paid in the case when the insured person was acknowledged by trustable medical sources as chronically or terminally ill.

Payments provided in the form 1099 LTC are paid directly to the person or interest, to the person who was insured, or to the third party who is responsible for the person. Payers who provide these benefits usually send a copy to the IRS, informing them about the actions. A copy of the form must also be sent to the person that receives the benefits.

What I need the Form 1099-LTC for?

• Organizations that provide benefits for terminally ill or chronically ill patients have to fill out IRS form 1099-LTC for every such patient. The form has to be sent to the IRS since it records the amount of money spent on the insurance of each patient. The payments can be provided to both patients, and people who take care of patients;
• The IRS needs to receive the form from the organization that provides LTC benefits. It keeps a record of the taxes that are paid and payments withheld from the budget. The payers are usually governmental agencies and insurance companies that receive compensation from the government.

How to Fill Out Form 1099-LTC?

There are several copies of the document that must be sent to different recipients. You may find the original PDF version of the 1099 LTC form on the IRS official website. Yet, if you want to fill it out online you need to look for a third-party editor that works with such types of documents. It is better to start with PDFLiner and open the form there.

You will be able to quickly fill in all the sections you need, download it on your computer, print it, and even send it online if the IRS allows it. There are 4 copies you need to fill out. Copy A is for the IRS and has to be attached to the 1096 form.  Copy B is for the Policyholder. Copy C of the 1099-LTC form is for the Insured. Copy D is for the Payer and can be saved to the personal documents. Here is what you need to include in the document:

1. Provide information about the payer, including name, address, and phone number. Include the Payer’s TIN;
2. Provide information on Policyholder, including TIN, address, and name;
3. Share the information on the gross long-term care payments, death benefits, and the calendar year when it was paid;
4. Provide information on the insured person, including name, address, and health status.

Organizations that work with Form 1099-LTC

• Department of the Treasury Internal Revenue Service Center.

Where to report form 1099 LTC?

You need to report this form to the four different parties. The first and most important recipient must be the Internal Revenue Service. You need to make sure you provide exact information on the benefits that the insured person received. The second copy has to go to the Policyholder. The third copy is for the insured person. The fourth is left in the hands of the person or organization that paid the benefits for the patient. There are instructions for every case. You can send copies online or by email to the parties. The IRS needs to receive the document in time, during the tax report period.