I received a lump sum distribution from mom mom's annuity upon death on form 1099-R. Do I enter gross distribution box 1 or 2b from 1099-R for my VA subtraction?

[robert-pisone]

I received a lump sum distribution from mom mom's annuity upon death on form 1099-R.  It does qualify as a Death Benefit Payment for a tax break under Virginia's tax law (I am a VA resident, the death benefit payment is made pursuant to an annuity contract with an insurance company; 2. the payment must be awarded to the beneficiary in a lump sum; and 3. the payment must be subject to taxation at the federal level....What line number or amount do a submit in my VA tax filing from the 1099-R form?  Do I enter gross distribution (box 1) or 2b “taxable” amount?

[PhyllisG · Accepted solution]

You would enter the amount from box 2a of the Form 1099-R. It is the amount that is deemed to be taxable on the federal level.