Question

1099R Allianz pay out

Forum|Forum|6 years ago
February 23, 2020
1 reply
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So I cashed out a non-retirement/non-pension Allianz life insurance annuity last year. $100K seed, $5K gain. I received a 1099R form. Is this expected? It has nothing to do with retirement/pensions. Just a regular investment.

I understand the gain is taxable and Turbotax handles this correctly. But in the "summary" review it adds the $100K to my total income for the year which seems odd. Does not affect any of the return forms as it is non-taxable income (fed/state). But this reporting seems weird to me. Is this expected?

-Henk

macuser_22

Employee

Life insurance is indeed reported on a 1099-R.

It will show as income on the summary screen which shows gross income, not taxable income.

The IRS requires reporting all income on a *income* tax return - taxable and not-taxable.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**