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Re: LTC Benefits Taxation

Posted by gil on March 09, 2002 at 09:34:23:

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

: : There is a lot of conflicting information out there. Maybe someone has a good handle on this topic.
: : 1.) Can policies taken out prior to 1-1-967, be considered (if the conversion option not taken then) as a TQ policy? 2.) Benefits received from a NQ policy are or are not included as taxable income? HIPAA requires insurers paying benefits to report on a 1099, indicating a tax liability- but are these not similar to self-funded DI policies, hence benefits are excluded from gross income?

: I'm a LTC specialist, maybe I can help...if a policy is taken out prior 1-1-97 can be TQ if the company allows it. All company specific. NQ policies are still in Limbo about incometaxabe or not. IRS has not yet ruled on the issue. Call me if you have any questions 1-800-241-8058...Rachel

Follow Ups:

Re: LTC Benefits Taxation : : : There is a lot of conflicting information out there. Maybe someone has a good handle on this topic. : : : 1.) Can policies taken out prior to 1-1-967, be considered (if the conversion option not taken then) as a TQ policy? 2.) Benefits received from a NQ policy are or are not included as taxable income? HIPAA requires insurers paying benefits to report on a 1099, indicating a tax liability- but are these not similar to self-funded DI policies, hence benefits are excluded from gross income? : : I'm a LTC specialist, maybe I can help...if a policy is taken out prior 1-1-97 can be TQ if the company allows it. All company specific. NQ policies are still in Limbo about incometaxabe or not. IRS has not yet ruled on the issue. Call me if you have any questions 1-800-241-8058...Rachel

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