Instructions for Form 

1099-LTC

(Rev. October 2019)

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 IRS.gov/Form1099LTC.

Reminders

In addition to these specific instructions, you should also use the 

current General Instructions for Certain Information Returns. 

Those general instructions include information about the 

following topics.

• Who must file.

• When and where to file.

• Electronic reporting.

• Corrected and void returns.

• Statements to recipients.

• Taxpayer identification numbers (TINs).

• Backup withholding.

• Penalties.

• Other general topics.

You can get the General Instructions for Certain Information 

Returns at IRS.gov/Form1099GeneralInstructions or go to 

IRS.gov/Form1099LTC.

Continuous-use form and instructions. Form 1099-LTC and 

these instructions have been converted from an annual revision 

to continuous use. Both the form and instructions will be updated 

as needed. For the most recent version, go to IRS.gov/

Form1099LTC

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

Forms 1099-LTC received and processed by the IRS each year, 

this form is available in an online fillable format. You may fill out 

the form, found online at IRS.gov/Form1099LTC, and send Copy 

B to the recipient. For filing with the IRS, follow the applicable 

procedures for filing electronically, or, for this form only, if you 

are qualified to file on paper, send in the black-and-white Copy A 

with Form 1096 that you print from the IRS website.

Specific Instructions

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

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

Payers of long-term care benefits who must file Form 1099-LTC 

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 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:

1. Being unable to perform, without substantial assistance 

from another individual, at least two daily living activities (eating, 

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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 may also be the insured.

Enter the name, address, and 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 current General Instructions for Certain Information Returns.

Truncating recipient’s TIN on payee statements. Pursuant 

to Regulations section 301.6109-4, all filers of this form may 

truncate a recipient’s TIN (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 TIN may 

not be truncated on any form. See part J in the current 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 current 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 (Rev. 10-2019)