I had an Employment Agreement to receive a sum of money on a certain date. On that date in 2019, ownership of a life insurance policy was transferred to me and I paid tax on the value at the time of the ownership change. In 2020 I received a 1099-R for a distribution used to pay the 2020 premium. Gross and taxable distribution are the same; code 7 was in box 7. How do I indicate that I already paid tax on this (in 2019) and the distribution is less than my basis?
Thank you.
