Genworth Life Insurance Company/Genworth Life Insurance Company of New York is required by the Internal Revenue Service to provide claimants with a 1099 LTC – Copy B Form for payments made under a long term care insurance contract. Payments include those made directly to you and those made to third parties on your behalf. However, receipt of this form does not necessarily mean that amounts reported are taxable income to you.
Questions regarding the Internal Revenue Service reporting requirements should be directed to the Internal Revenue Service, a tax advisor, or tax-preparation service. The IRS phone number is 1-800-829-3676. Additionally, information can be found on the Internal Revenue Service website at: www.irs.gov.
|1. Gross benefits paid.||6. Payer’s name and address e.g., Genworth Life Insurance Company.||11. Policyholder’s name and address. Will be the same as Insured’s name and address.|
|2. Not applicable to LTC.||7. Tax year.||12. Insured’s name and address.|
|3. *Indicates benefits paid (as reflected in Box 1) as either on a Per Diem (Indemnity) basis or as a Reimbursement for actual long term care expenses incurred. (See below)
||8. Payer’s federal tax identification number e.g., Genworth Life Insurance Company’s federal tax identification number.||13. Claim number.|
|4. An optional field indicating if benefits were paid from a Tax Qualified LTCi Contract.||9. Policyholder’s identification number. Will be the same as the Insured’s Social Security Number.||14. TDP = Total Days Paid. Only applicable to Per Diem (Indemnity) claims.|
|5. The Chronically Ill box will always be checked for LTC. The Terminally Ill box is not applicable to LTC.||10. Insured’s Social Security Number.||15. If a Reimbursement claim, this reflects the date certified as Chronically Ill. If a Per Diem (Indemnity) claim, this reflects the claim’s original date of loss.|
*If Box 3 is marked Reimbursed Amount and you have a Tax Qualified Contract, then the amounts received can generally be excluded from your income. A tax qualified contract qualifies for favorable federal income tax treatment. If the policy only pays benefits that reimburse you for qualified long term care expense you will not owe federal income tax on these benefits, however we are still required to report to the IRS the amount of tax-free long term care insurance benefits that you have received under your insurance contract. Please contact the IRS to obtain additional information or consult with a tax advisor for additional guidance.
*If Box 3 is marked Reimbursed Amount and you have a Non-Tax Qualified Contract, then some or all of your benefits may be taxable. On a yearly basis, we are required to report to the IRS on Form 1099-LTC the gross amount of long term care benefits issued under your insurance contract. Since your contract is not tax qualified, some or all of your benefits may be taxable. You will need to determine the taxable portion of non-qualified long term care benefits for purposes of your individual income tax return. Please contact the IRS to obtain additional information or consult with a tax advisor for additional guidance.
*If Box 3 is marked Per Diem (Indemnity) then the amount you may exclude from your income is limited. Because your benefits were paid on a per diem (indemnity) basis, without regard to the actual long term care expenses incurred, the amount of benefits you may exclude from your income is subject to a daily maximum amount. If you exceed this per diem (indemnity) limitation, part of the benefits you received may be taxable. All relevant forms and instructions for determining the taxable portion, if any, of long term care benefits paid on a per diem (indemnity) basis are available by contacting the IRS at 1-800-829-3676 or online at www.irs.gov or from local libraries and post offices. For further assistance, please contact the IRS directly or consult with a tax advisor.