How to categorize income from Long-Term-Care (LTC) Benefits

Question

My mother-in-law is not receiving benefits associated with her LTC policy.  That is income she is now receiving.  I do not think that is taxable but how would you categorize that income in Quicken?  Is it one of the built-in categories or just make up a new one and do not associate it with any tax line item?

NotACPA · Answer

@dennis.f.warren Did you mean "NOW receiving benefits"?

Tom Young · Answer

This article

https://www.cbsnews.com/news/do-you-pay-taxes-on-long-term-care-benefits/

answers the "taxable or non-taxable?" question, but be sure to do your own research.  An inquiry at the IRS's web site would should answer the question comprehensively.

I'd say create your own income Category for this source and associate it, or not, with a tax line item depending on the circumstances.