Instructions For Form 1099-Ltc - 2018 (Page 2 of 3) in pdf

Chronically Ill Individual

IF the statement is for the ...

THEN use...

A chronically ill individual is someone who has been certified

Policyholder

Copy B

(at least annually) by a licensed health care practitioner as:

Insured

Copy C

1. Being unable to perform, without substantial

assistance from another individual, at least two daily living

Policyholder and the policyholder is

Copy B (Copy C is optional)

the insured

activities (eating, toileting, transferring, bathing, dressing,

and continence) for at least 90 days due to a loss of

functional capacity; or

2. Requiring substantial supervision to protect the

For more information about the requirement to furnish a

individual from threats to health and safety due to severe

statement to the policyholder and to the insured, see part M

cognitive impairment.

in the 2018 General Instructions for Certain Information

Returns.

Terminally Ill Individual

Truncating recipient’s TIN on payee statements.

Pursuant to Treasury Regulations section 301.6109-4, all

A terminally ill individual is someone who has been certified

filers of this form may truncate a recipient’s TIN (social

by a physician as having an illness or physical condition that

security number (SSN), individual taxpayer identification

can reasonably be expected to result in death in 24 months

number (ITIN), adoption taxpayer identification number

or less after the date of certification.

(ATIN), or employer identification number (EIN)) on payee

Reporting

statements. Truncation is not allowed on any documents the

filer files with the IRS. A payer's TIN may not be truncated on

Report payments only if the policyholder is an individual.

any form. See part J in the 2018 General Instructions for

Reportable payments are those made to the policyholder, to

Certain Information Returns.

the insured, or to a third party.

Account Number

You may report benefits paid from each contract on a

separate Form 1099-LTC. At your option, you may aggregate

The account number is required if you have multiple

benefits paid under multiple contracts on one Form

accounts for a recipient for whom you are filing more than

1099-LTC if the same information is reportable on the form

one Form 1099-LTC. Additionally, the IRS encourages you to

for each contract (other than the amount of benefits paid).

designate an account number for all Forms 1099-LTC that

you file. See part L in the 2018 General Instructions for

Policyholder

Certain Information Returns.

The policyholder is the individual who owns the contract,

Box 1. Gross Long-Term Care Benefits Paid

including the owner of a contract sold or assigned to a

Enter the gross long-term care benefits paid this year (other

viatical settlement provider. In the case of a group contract,

than accelerated death benefits). These benefits are all

the term “policyholder” includes the certificate holder (or

amounts paid out on a per diem or other periodic basis or on

similar participant). You must report long-term care benefits

a reimbursed basis. It includes amounts paid to the insured,

to the policyholder even if the payments were made to the

to the policyholder, and to third parties. You are not required

insured or to a third party (for example, a nursing home,

to determine whether any benefits are taxable or nontaxable.

caretaker, or physician). The policyholder also may be the

insured.

Box 2. Accelerated Death Benefits Paid

Enter the name, address, and TIN of the policyholder on

Enter the gross accelerated death benefits paid under a life

Form 1099-LTC. If the policyholder is not an individual, no

insurance contract this year to or on behalf of an insured who

reporting is required.

has been certified as terminally or chronically ill. Include the

amount paid by a viatical settlement provider for the sale or

Insured

assignment of the insured's death benefit under a life

insurance contract.

The insured is the chronically or terminally ill individual on

whose behalf long-term care benefits are paid.

Box 3. Check if Per Diem or Reimbursed

Amount

Enter the name, address, and TIN of the insured on Form

1099-LTC.

Check a box to indicate whether the payments were made on

a per diem or other periodic basis or on a reimbursed basis.

For accelerated death benefits, do not check a box if you

Statement to Policyholder and Insured

made payments on behalf of a terminally ill person. “Per diem

If you are required to file Form 1099-LTC, you must furnish a

basis” means payments made on any periodic basis without

statement or acceptable substitute to both the policyholder

regard to actual expenses. “Reimbursed basis” means

and to the insured as shown.

payments made for actual expenses incurred.

Box 4. Qualified Contract (Optional)

Check the box to indicate whether long-term care insurance

benefits are paid from a qualified long-term care insurance

contract. See Qualified Long-Term Care Insurance Contract,

earlier.

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Instructions for Form 1099-LTC (2018)

Instructions For Form 1099-Ltc - 2018 Page 2

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