Entering form 1099-LTC in Lacerte

Use this workflow to enter a client’s Form 1099-LTC and generate Form 8853 for long-term care insurance contracts. This ensures the correct treatment of qualified long-term care reimbursements and accelerated death benefits.

To generate Form 8853 for Long-Term Care Insurance:

1. Go to Screen 32, HSA/MSA/LTC Contracts.
2. In the HSA/MSA panel, select L/T Care Insurance Contracts (8853).
3. If the policyholder isn't the taxpayer, select the Spouse is policyholder box or enter the First name, Last name and SSN of insured.
   • If both the taxpayer and spouse received Form 1099-LTCs, create a separate entry for each policyholder.
4. Select any checkboxes that are applicable to your client.
5. If you received the 1099-LTC box 1 on a per-diem or periodic basis, use the Gross LTC payments received on per-diem or periodic basis (code 107) field. 
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 you paid the amount in box 1 or 2 on a per-diem basis or if it was a reimbursement of actual long-term care expenses. If the insured was terminally ill, this box may not be selected.
9. Complete all other necessary entries for Form 8853.