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June 5, 2019
Solved

How do I report a taxable gain for a cash surrender of a 1959 life insurance policy and Prudential won't give me a 1099-R cause surrender proceeds are less than $5,000.

  • June 5, 2019
  • 2 replies
  • 0 views

I called Prudential and they said they won't give me a 1099-R, but I have to report a $155 taxable gain from the cash surrendered policy.

Best answer by KrisD15

Enter it as "Other Income" 

Sign into your account, your return, and click "Pick up where I left off

Click Federal

Click Wages & Income

Get to All Income and scroll down to Less Common Income and click Show more

Scroll down to Miscellaneous Income, 1099-A, 1099-C and click Start

Scroll down to Other reportable income and click Start

Type   surrender proceeds   into the description box and enter the amount

Click Done


2 replies

Employee
June 5, 2019
Apparently Prudential thinks there is no taxable gain, otherwise they are required to issue a Form 1099-R since the gross amount is more than $10.
KrisD15
KrisD15Answer
June 5, 2019

Enter it as "Other Income" 

Sign into your account, your return, and click "Pick up where I left off

Click Federal

Click Wages & Income

Get to All Income and scroll down to Less Common Income and click Show more

Scroll down to Miscellaneous Income, 1099-A, 1099-C and click Start

Scroll down to Other reportable income and click Start

Type   surrender proceeds   into the description box and enter the amount

Click Done


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elasedraAuthor
June 5, 2019
Thank you. I was wondering if I was supposed to create a Substitute 1099-R and explain.