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Give me a break!

Posted by scottaolson on March 22, 19101 at 21:45:39:

In Reply to: Re: LTC Benefits Taxation posted by Rachel on March 22, 19101 at 18:34:43:

IF you are a specialist, Rachel, you sure don't know what you're talking about.

All policies that were issued before 1/1/97 are "grandfathered" and the premiums are deductible and the benefits are tax free. You are incorrect when you say that it is up to each insurer to decide if a pre-1997 policy is TQ or NTQ. All pre-1997 policies were grandfathered into the law. All the pre-1997 policies have tax-free benefits and tax deductible premiums.

Secondly, the IRS has written a letter to Congressman Nethercutt stating that benefits from NQ policies, as long as the policies meet the IRS definitions of health insurance, have non-taxable benefits. Income tax is not required to be paid on the benefits from a NQ policy. The purpose of the 1099 is so that soomeone who is receiving benefits from an LTCi policy does not try to deduct the Nursing Home expenses that he/she incurred that were actually paid for by the long term care insurance policy.

Rachel, instead of using this board as a commercial trying to peddle a sale, please spend some more time educating yourself instead of making a fool of yourself.

Respectfully,

Scott A. Olson, CLTC

Follow Ups:

Re: Give me a break! : IF you are a specialist, Rachel, you sure don't know what you're talking about. : All policies that were issued before 1/1/97 are "grandfathered" and the premiums are deductible and the benefits are tax free. You are incorrect when you say that it is up to each insurer to decide if a pre-1997 policy is TQ or NTQ. All pre-1997 policies were grandfathered into the law. All the pre-1997 policies have tax-free benefits and tax deductible premiums. : Secondly, the IRS has written a letter to Congressman Nethercutt stating that benefits from NQ policies, as long as the policies meet the IRS definitions of health insurance, have non-taxable benefits. Income tax is not required to be paid on the benefits from a NQ policy. The purpose of the 1099 is so that soomeone who is receiving benefits from an LTCi policy does not try to deduct the Nursing Home expenses that he/she incurred that were actually paid for by the long term care insurance policy. : Rachel, instead of using this board as a commercial trying to peddle a sale, please spend some more time educating yourself instead of making a fool of yourself. : Respectfully, : Scott A. Olson, CLTC

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