Question

1099LTC

Forum|Forum|6 years ago
February 18, 2020
1 reply
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I RECEIVED A CHECK FROM AN INSURANCE COMPANY IN THE AMOUNT OF $6171.02. THEN I RECEIVED A LETTER FROM THE COMPANY SAYING THAT I HAD PAID INTO THE COMPANY $16,585.00 THEREFOR A LOSS. WHERE DO I PUT THESE NUMBERS INTO MY TAXES. I CANNOT FIND A PLACE FOR THE 1099LTC OR FOR THE LOSS OF THE OTHER AMOUNT., HELP, PLEASE.

N

NCPERSON1

can you please explain the purpose of the insurance. what was the reason they returned the money to you?

and what did they mean there was a loss.

M

MLG0420803Author

Good morning. This insurance policy was purchased several years ago for the purpose of nursing home care. In 2019, I received a letter from them changing the coverage and the yearly amount. Or I could cash it in. I have a letter from them saying I had paid into the company the total of $16,585.00. When I cashed it in I received a check in the amount of $6,171.02. This amount in on tax form 1000-LTC. What do I have to do with it? I cannot see paying taxes on the returned amount when there was a significant loss. Please help me. Thank you.

N

NCPERSON1

as you are stating this is return of premium, it is not taxable income to you.

You paid the premiums with after-tax dollars and they are returning those after tax dollars to you.

It's no different than paying your homeowner's insurance and then part way through the year cancelling the policy and they return the unused premium to you.