Form 1099-LTC: Long-Term Care and Accelerated Death Benefits
Published November 5, 2026
If you receive long-term care benefits or accelerated death benefits, the payer may send you a Form 1099-LTC. The form reports the payments. It does not decide by itself whether the money is taxable. The answer depends on the type of policy, the kind of payment, and the rules in the IRS instructions.
This guide explains the form in plain language. It is general information, not advice about your own return. For questions about a specific policy or payment, ask the payer or a tax professional.
Who sends the form
The payer sends this form. The form gives two examples of payers: an insurance company and a viatical settlement provider. The payer must send the form for payments made under a long-term care insurance contract. The payer must also send it for accelerated death benefits. The form says these benefits may be paid when the insured person has been certified as chronically ill or terminally ill.
Payments can go to you directly. They can also go to a care provider or another third party for your benefit. The form covers both kinds of payments.
What each box means
- Box 1 shows the gross long-term care benefits paid during the year.
- Box 2 shows the gross accelerated death benefits paid during the year.
- Box 3 shows whether the amount was paid on a per diem basis or as reimbursement of actual long-term care expenses. Per diem means the payments were made on a periodic basis, without regard to the actual expenses for that period.
- Box 4 may show whether the benefits came from a qualified long-term care insurance contract. This box is optional.
- Box 5 may show whether the insured person was certified as chronically ill or terminally ill, and the latest date of that certification. This box is also optional.
The account number box is for the payer's own tracking. The form may show only the last four digits of a taxpayer number, such as a Social Security number. The payer has reported the full number to the IRS.
How the benefits are taxed
The IRS says that amounts paid under a qualified long-term care insurance contract are generally excluded from income. That means they are generally not taxable to you. If the payments are made on a per diem basis, the amount you may exclude is limited. The limit is shared among everyone who owns a qualified contract for the same insured person. The form points to Publication 525 and to Form 8853 for the details.
Accelerated death benefits follow different rules. The IRS says these amounts are fully excludable from income if a physician certified the insured person as terminally ill. For chronically ill people, the IRS says the payments are excludable to the same extent as payments under a qualified long-term care insurance contract.
Which copy you get
The policyholder gets Copy B. The policyholder is the person who owns the policy. The insured is the person the coverage is for. If you are the insured but not the policyholder, you get Copy C. The form says Copy C is for information only, because those payments are not taxable to the insured. Only the policyholder is required to report the information on a tax return.
If you are both the policyholder and the insured, you should receive Copy B.
Why the form matters
The IRS receives a copy of this form too. The payer reports the full taxpayer number to the IRS, even when your copy shows only the last four digits. This means the amounts on your records should match what the IRS has. If a number on your copy looks wrong, ask the payer for a corrected form.
What to do next
Keep the form with your tax records. Check that the names, boxes, and amounts match your payment records. Then read the form instructions, Publication 525, and Form 8853 before you decide how to report anything. Do not guess the taxable part on your own. If the payments were made on a per diem basis, the limit rules are the part most people need to check carefully.
Sources: Sources: IRS, Form 1099-LTC (Rev. April 2025) and its Instructions for Policyholder and Instructions for Insured (https://www.irs.gov/pub/irs-pdf/f1099ltc.pdf); Publication 525 and Form 8853 as referenced on the form This is general information, not advice about your specific return.
