Stress-Free 1099-LTC Reporting: File Electronically and Save Time

Form 1099-LTC, also known as Long-Term Care and Accelerated Death Benefits, is utilized by insurance companies, government entities, and other payers to report payments made to policyholders during the previous tax year. These payments generally fall into two categories:

The information reported on Form 1099-LTC assists the IRS in determining if any portion of these benefits is taxable for the recipient.

E-file the Form 1099-LTC with the IRS and send a copy to the policyholder or the individual receiving the benefits. This ensures that the IRS is informed of the payments made under a long-term care insurance contract or for accelerated death benefits, and that the recipient has the necessary information to report these benefits on their tax return. Accurate reporting helps both parties comply with tax regulations and avoid potential issues with the IRS.

Form 1099-LTC should be filed when payments are made for long-term care insurance benefits or accelerated death benefits. This includes payments made on behalf of terminally or chronically ill individuals.

Failing to file Form 1099-LTC can result in penalties from the IRS. Penalties vary based on how late the form is filed and whether the failure was due to intentional disregard of the filing requirement.