2017

Instructions for Form 

1099-LTC

Long-Term Care and Accelerated Death Benefits

Department of the Treasury

Internal Revenue Service

Future Developments 

For the latest information about developments related to 

Form 1099-LTC and its instructions, such as legislation 

enacted after they were published, go to www.irs.gov/

form1099ltc.

Reminder

In addition to these specific instructions, you should also use 

the 2017 General Instructions for Certain Information 

Returns. Those general instructions include information 

about the following topics.

Who must file (nominee/middleman).

When and where to file.

Electronic reporting requirement.

Corrected and void returns.

Statements to recipients.

Taxpayer identification numbers.

Backup withholding.

Penalties.

Other general topics.

You can get the general instructions from General 

Instructions for Certain Information Returns or www.irs.gov/

form1099ltc.

Specific Instructions

File Form 1099-LTC if you pay any long-term care benefits.

Online fillable form. Due to the very low volume of paper 

Forms 1099-LTC received and processed by the IRS each 

year, this form has been converted to an online fillable 

format. You may fill out the form, found online at www.irs.gov/

form1099ltc, and send Copy B to the recipient. For filing with 

the IRS, follow the applicable procedures for filing 

electronically if you are filing 250 or more forms. For Form 

1099-LTC only, If you are filing this form on paper, you may 

send in the black and white Copy A with Form 1096 that you 

print from the IRS website.

Long-Term Care Benefits

“Long-term care benefits” means:

1. Any payments made under a product that is 

advertised, marketed, or offered as long-term care insurance 

(whether qualified or not); and

2. Accelerated death benefits (excludable in whole or in 

part from gross income under section 101(g)) paid under a 

life insurance contract or paid by a viatical settlement 

provider.

Who Must File

File Form 1099-LTC if you paid any long-term care benefits, 

including accelerated death benefits. Payers include 

insurance companies, governmental units, and viatical 

settlement providers.

Viatical Settlement Providers

A viatical settlement provider is any person who:

1. Is regularly engaged in the trade or business of 

purchasing or taking assignments of life insurance contracts 

on the lives of terminally or chronically ill individuals, and

2. Is licensed in the state where the insured lives. If 

licensing is not required in the state, the provider must meet 

other requirements (including those below) depending on 

whether the insured is terminally or chronically ill.

a. If the insured is terminally ill, the provider must meet 

the requirements of sections 8 and 9 of the Viatical 

Settlements Model Act of the National Association of 

Insurance Commissioners (NAIC), relating to disclosure and 

general rules. The provider must also meet the requirements 

of the Model Regulations of the NAIC for evaluating the 

reasonableness of amounts paid in viatical settlement 

transactions with terminally ill individuals.

b. If the insured is chronically ill, the provider must meet 

requirements similar to those of sections 8 and 9 of the 

Viatical Settlements Model Act of the NAIC and must also 

meet any standards of the NAIC for evaluating the 

reasonableness of amounts paid in viatical settlement 

transactions with chronically ill individuals.

However, if a state enacts a licensing requirement 

but does not permit viatical settlement providers to 

engage in business until the licenses are granted, the 

provider will not be considered as licensed under section 

101(g)(2)(B)(i)(I). See Rev. Rul. 2002-82, which is on 

page 978 of Internal Revenue Bulletin 2002-51 at 

www.irs.gov/pub/irs-irbs/irb02-51.pdf.

Qualified Long-Term Care Insurance Contract

A contract issued after 1996 is a qualified long-term care 

insurance contract if it meets the requirements of section 

7702B, including the requirement that the insured must be a 

chronically ill individual (see Chronically Ill Individual, later). A 

contract issued before 1997 generally is treated as a 

qualified long-term care insurance contract if it met state law 

requirements for long-term care insurance contracts and it 

has not been materially changed.

Accelerated Death Benefits

An accelerated death benefit is any amount paid under a life 

insurance contract for an insured individual who is terminally 

or chronically ill. It also includes any amount paid by a viatical 

settlement provider for the sale or assignment of a death 

benefit under a life insurance contract for a chronically or 

terminally ill individual.

Chronically Ill Individual

A chronically ill individual is someone who has been certified 

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

CAUTION

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Aug 24, 2016 Cat. No. 27981Y
1. Being unable to perform, without substantial 

assistance from another individual, at least two daily living 

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 

individual from threats to health and safety due to severe 

cognitive impairment.

Terminally Ill Individual

A terminally ill individual is someone who has been certified 

by a physician as having an illness or physical condition that 

can reasonably be expected to result in death in 24 months 

or less after the date of certification.

Reporting

Report payments only if the policyholder is an individual. 

Reportable payments are those made to the policyholder, to 

the insured, or to a third party.

You may report benefits paid from each contract on a 

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

benefits paid under multiple contracts on one Form 

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

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

Policyholder

The policyholder is the individual who owns the contract, 

including the owner of a contract sold or assigned to a 

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

the term “policyholder” includes the certificate holder (or 

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

to the policyholder even if the payments were made to the 

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

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

insured.

Enter the name, address, and taxpayer identification 

number (TIN) of the policyholder on Form 1099-LTC. If the 

policyholder is not an individual, no reporting is required.

Insured

The insured is the chronically or terminally ill individual on 

whose behalf long-term care benefits are paid.

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

1099-LTC.

Statement to Policyholder and Insured

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

statement or acceptable substitute to both the policyholder 

and to the insured as shown.

IF the statement is for the ... THEN use...

Policyholder Copy B

Insured Copy C

Policyholder and the policyholder is 

the insured

Copy B (Copy C is optional)

For more information about the requirement to furnish a 

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

in the 2017 General Instructions for Certain Information 

Returns.

Truncating recipient’s taxpayer identification number 

on payee statements. Pursuant to Treasury Regulations 

section 301.6109-4, all filers of this form may truncate a 

recipient’s taxpayer identification number (social security 

number (SSN), individual taxpayer identification number 

(ITIN), adoption taxpayer identification number (ATIN), or 

employer identification number (EIN)) on payee statements. 

Truncation is not allowed on any documents the filer files with 

the IRS. A payer's taxpayer identification number may not be 

truncated on any form. See part J in the 2017 General 

Instructions for Certain Information Returns.

Account Number

The account number is required if you have multiple 

accounts for a recipient for whom you are filing more than 

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

designate an account number for all Forms 1099-LTC that 

you file. See part L in the 2017 General Instructions for 

Certain Information Returns.

Box 1. Gross Long-Term Care Benefits Paid

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

than accelerated death benefits). These benefits are all 

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

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

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

to determine whether any benefits are taxable or nontaxable.

Box 2. Accelerated Death Benefits Paid

Enter the gross accelerated death benefits paid under a life 

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

has been certified as terminally or chronically ill. Include the 

amount paid by a viatical settlement provider for the sale or 

assignment of the insured's death benefit under a life 

insurance contract.

Box 3. Check if Per Diem or Reimbursed 

Amount

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 

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

basis” means payments made on any periodic basis without 

regard to actual expenses. “Reimbursed basis” means 

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.

Box 5. Check if Chronically Ill or Terminally Ill 

(Optional)

Check the box to indicate whether the insured was 

chronically or terminally ill. Also, enter the latest date 

certified. If the insured was neither chronically nor terminally 

ill, leave this box blank. See Chronically Ill Individual and 

Terminally Ill Individual, earlier.

-2- Instructions for Form 1099-LTC (2017)