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June 4, 2019
Question

1099 R from mothers death. Box 7 is flagged with code 4 signifying death benefit. Box 1 states the amount received and 2A is zero. How do I report this on 1040?

  • June 4, 2019
  • 1 reply
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I believe the amount is not taxable as the original investment was 200K and insured.  Value at mothers death was less than 200K so the payment was 200K so to me no gain.  Box 1 is 200K, Box 2A is zero and box 7 is flagged with a 4 which is  death benefit.  Questions are where to I report this amount and is there a tax liability?

1 reply

Employee
June 4, 2019

Very sorry for your loss.

If Box 2A is 0 (zero), than the amount of the total Box 1 Gross distribution that is taxable is 0.

When entering the 1099-R as below, be sure to duplicate everything as is on the paper form. Do not input 0's when boxes are blank on the form.

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