Long-Term Care and Accelerated Death Benefits

Internal Revenue Code (IRC) sections 7702B and 101(g) define situations under which benefits paid under a long-term health care insurance contract and accelerated death benefits paid under a life insurance policy may qualify for special tax treatment. IRC section 6050Q requires the payer to report all such benefit amounts paid during any calendar year, specifying whether or not the benefits were paid in whole or in part on a per diem or other periodic basis without regard to expenses. Benefit payers use Form 1099-LTC to report any long-term care or accelerated death benefits paid to an individual. Payers include insurance companies, governmental units, and viatical settlement providers.

The latest form for Long-Term Care and Accelerated Death Benefits expires 2029-01-31 and can be found here.