Long term care insurance

[Frank2560]

If a person is already in an assisted living location and it is being paid for by insurance, is that concidered income?

I am probably wrong but my thinking is that the IRS doesn't consider it taxable so why wouldn't it be non-income.

[vetadmin]

You are only allowed to deducted Unreimbursed medical expense, if the insurance company is reimbursing it, it is not Unreimbursed, so it’s not income, but it negates the medical expense because he is not actually paying for it.

[jpez]

LTCi CAN be taxable income regardless fo what it pays for.
The ins co can tell you instantly if the benefit on a particular policy is taxable or not.
If it is, then the expense it is covering can be deducted as a medical expense.

Second, concider reducing the amount that the ins co sends so that you can infact apply for THe PENSION Benefit.  THis will make the LTCi policy last longer and get the additional income from VA that is not taxable.

[Frank2560]

Thank you very much for the information, I will look into your suggestion.