1099-R Forms - Life Insurance Policies for decreased

Forum|Forum|4 years ago
March 9, 2022
2 replies
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My mother passed away in 2020 and my siblings and I received distributions in 2021 from two life insurance policies she had. I read that inheritance amounts are not taxed (Federal) , as her total estate was worth $150K. And we all live in states where the state doesn't tax it either. So we received two 1099-R forms and both are showing taxable amounts in boxes 2a. Are we required to file those?

Best answer by AmyC

Yes, this is not life insurance. You see where it says employee contributions? That is money she and/or the company set aside for her. Box 7 shows that you are receiving this due to her death. Best case scenario is if you each received a form, you each put it on your taxes. If the form is to the estate, then it will need to be split up with a good paper trail.

AmyC

Employee

Contact the company and tell them you believe you received these 1099-R forms in error and see if they will issue a corrected form. Otherwise, they need to explain why there is a taxable amount.

Once you talk to the issuers, that should clear things up.

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bbaby5Author

Thank you. Here is form with other boxes included. So Box 2a equals box 1 minus box 5. Does that make more sense at to why we received them?

AmyCAnswer

Employee

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titanbackman

It looks like you did not file a claim for life insurance benefits and they cancelled the policy and refunded the premiums. I would contact the insurer, explain that your mother died while the policy was in force and file the claim so that you can collect the insurance.