Cost Basis left over in a Death Benefit payout

[pdfbearindy06]

I received a death benefit from my father in 2019.  When I started my taxes I found the original 1099-R was incorrect.  I received the new 1099-R yesterday with a letter attached stating the following:

"There was $XX,XXX.XX of COST BASIS left in this contract.  According to Internal Revenue Code Section 72(b) (3), you as beneficiary may take a deduction on your income tax return Form 1040, Schedule A for the remaining investment in the contract."

I researched this wording in Turbo Tax, Help Discussions, Etc. and found nothing relating to this situation.  Can someone assist me on where I should input this information on my tax return?  Or does it go on my return, or should I contact the Payer back and have that balance transferred to my checking account?

[HelenC12]

First of all, calculate the tax implications the corrected 1099-R form has on your tax return.

1. Start by amending your return. To amend your return, click here.
2. Delete the original 1099-R and
3. Add the corrected 1099-R.

Unless you itemize your deductions on Schedule A, you may not need to take the Schedule A deduction for the remaining investment in the contract. 

Contact the Payer if you have any other questions about money you're owed.