I did not get a 1099R for a life insurance surrender. I need to add the total distribution (5a) and total taxable amount (5b) in Turbo Tax but am not sure where to add.

Forum|Forum|2 years ago
March 28, 2024
2 replies
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I know it ends up on 1040SR but I am not sure how to add it in to the Turbo Tax program

TurboTax Deluxe Online

Best answer by dmertz

If the amount that you received from the surrender of the policy was less than your investment in the contract, the distribution is not taxable and the insurance company is not required to issue a Form 1099-R because there is no taxable income to report. Otherwise, the insurance company is required to have issued a Form 1099-R that you must obtain and enter into TurboTax.

mglauner

If you didn't receive a 1099 to report your life insurance surrender, the only taxable portion is the earnings over the amount of premiums you paid in.

Here's how to enter your earnings in TurboTax:

In TurboTax, open your tax return
Click on Federal in the left-hand column, then on Wages & Income
Locate the section Investments and Savings
Click Start next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
Answer Yes to the question: Did you sell any investments?
Answer No to the question: Did you receive a form 1099-B or brokerage statement?
Select Other from the list of investments.
Follow the TurboTax interview to enter your information.

Here's more discussion on Life Insurance Surrender.

dmertzAnswer

Employee

trewq49Author

Thanks Dmertz - That is exactly what the insurance company told me. The cash surrender value did not exceed $5,000 and the policy was issued prior to 08/12/82. If there is no required 1099R, do I need to include in my dad's taxes? Normally my dad's taxes are very easy. This life insurance cash surrender is stressing me out and was waiting for the 1099R. I went back and forth with Prudential and finally got the letter with the details I mention above.

This community is very helpful so THANKS. Thanks again.