Are long term care benefits taxable?

It depends on the policy, but most benefit payments are free from federal income tax.

You should check the policy as it has to be qualified meaning no cash value and renewable, at least.

Benefits from a tax-qualified long-term care insurance policy are usually not considered taxable income.

Did you receive a Form 1099-LTC?

Click on Federal Taxes (Personal using Home & Business)

Click on Wages & Income (Personal Income using Home & Business)

Click on I'll choose what I work on (if shown)

Scroll down to Less Common Income

On Miscellaneous Income, 1099-A, 1099-C, click the start or update button

On the next screen - On Long-term care account distributions (Form 1099-LTC), click the start or update button

Or enter long-term care accounts in the Search box located in the upper right of the program screen. Click on Jump to long-term care accounts