Is Long Term Care Insurance Benefits Taxable? 
Payments of long-term care claims by an insurance company are generally not taxable as regular income . However , the policy title page must clearly state that the policy is a `` tax-qualified long-term care insurance policy '' or `` TQ '' . Some carriers still sell `` non-tax-qualified '' long-term care policies -LRB- NTQ -RRB- in which the benefits may be taxable as regular income . The reasoning is that NTQ policies are more generous in qualifying someone to go on claim and that other policy features may provide a broader range of care . Whether those attributes would offset the possible taxation of the benefit is debatable . Most long-term care policies today are `` TQ '' . 