I had deposit accounts at XXXX Savings Bank when it was purchased by a credit union last year. I am now a member of that credit union. As part of the sale of XXXX Savings Bank to the credit union in 2022, I received a check for $460.41 and a letter stating, "We are pleased to inform you that you are receiving the enclosed check as payment from the Liquidation Account established by XXXX Savings Bank at the time of XXXX Savings Bank's mutual to stock conversion in 2014." The letter further states, "The funds in the Liquidation Account are being distributed to you and other eligible former depositors of XXXX Savings Bank as a result of XXXXXX Community Credit Union acquiring the assets and assuming the liabilities of XXXX Savings Bank on April 30, 2022, and the subsequent liquidation of XXXX Savings Bank. In my research, I found that apparently, by law, at the time of the XXXX Savings Bank's mutual to stock conversion, it had to create a Liquidation account for it's eligible depositors.
I have received at 1099-DIV with the amount of the check I received reported in Box 9, "cash liquidation distributions."
I entered the information from this 1099-DIV in TurboTax and then received the messages, "We'll handle your cash distribution of $460.41 from XXXXXXX later. Just remember to go to the Investment Income section under Wages & Income.
What, if anything, do I have to report in the Investment Income section related to this cash liquidation distribution. I've only used the Investment Income section to report on 1099-Bs I receive when I sell shares from mutual funds. I didn't receive a 1099-B for this cash distribution. By the way, I didn't own any shares in the bank's holding company. I was just a depositor at the time of its conversion from mutual to stock. I may have been notified in 2014 that as a depositor I was eligible to purchase shares (subscriber shares?), but I didn't purchase any. I was simply just a depositor at the time.
