Problem Description

Where do I enter amounts from a Form 1099-LTC to flow to Form 8853, page 2?


Solution Description

To generate Form 8853 for Long-Term Care Insurance:

  1. Go to Screen 32, HSA/MSA/LTC Contracts.
  2. Select L/T Care Insurance Contracts (8853) from the left navigational panel
  3. Complete the Policyholder information if different from Screen 1, Client Information (program will pull the taxpayer / spouse information to the form automatically).
  4. Select the appropriate check boxes. 
  5. Enter the amount from Box 1 of Form 1099-LTC in Gross LTC payments received on per-diem or periodic basis (code 107). (If the amount was received on a per-diem or periodic basis).
  6. Enter all applicable amounts including the Portion of gross from qualified LTC insurance contracts (code 108).
  7. Enter the amount from Box 2 in Accelerated death benefits received (except terminally ill) (code 109).
  8. Enter total reimbursements received in Reimbursements Received for Qualified LTC Services (code 112) (Form 8853, page 2, line 24).
    • Box 3 shows if the amount in box 1 or 2 was paid on a per diem basis or was reimbursement of actual long-term care expenses. If the insured was terminally ill, this box may not be checked.
  9. Complete all other necessary entries for Form 8853.