Had a call from a friend today asking how to handle a 1099-R from Lincoln Life Insurance Co with an amount in box 1, $0.00 in box 2a, W in box 7 and box 8 contained the same amount as box 1. Friend claims he paid money out of his pocket for this annual premium for long term care insurance and he clearly indicated the money paid did not come from any other source. I was thinking maybe he got the funds from some type of insurance policy. He is reporting the document on his tax return just to account for the document, even though box 2a is $0.00 which, in my opinion is a way to ensure it is accounted for with the IRS. He is using TurboTax to prepare and submit his return.
Any comments from anyone?
