My 92 YO father went into a nursing home in 2021. He cashed out a life ins policy to pay for it. He recvd a 1099R from life ins co. Does he have to file a return?

[jkihn723]

There is a taxable amount on the 1099R.  His only form of income was Social Security which is not taxable.  He has not had to file a return years.

[ColeenD3]

Yes, if he is over the filing requirement. Depending on the amount of his income, some of his social security might also be taxable.

• Single filing status:
  • $12,550 if under age 65
  • $14,250 if age 65 or older
• Married filing jointly:
  • $25,100 if both spouses under age 65
  • $26,450 if one spouse under age 65 and one age 65 or older
  • $27,800 if both spouses age 65 or older
• Married filing separately — $5 for all ages
• Head of household:
  • $18,800 if under age 65
  • $20,500 if age 65 or older
• Qualifying widow(er) with dependent child:
  • $25,100 if under age 65
  • $26,450 if age 65 or older

[SweetieJean]

State filing requirements may be different.

[Opus 17]

If he got a 1099, then its taxable income.  Depending on the amount, it may also make part of his social security taxable. There's no general exemption for age.

The general rule is that a return of his premiums will not be taxable if he paid them after tax, but if he got more than he paid in premiums (treating this as whole life or any other investment gains) then the extra is taxable income.  Or if the premiums were paid tax-free (like a non-taxen employee benefit) then the entire amount is taxable.  

If you think the amount on the 1099-R is incorrect (incudes his after-tax premiums), you can report less income, but you would have to be prepared to prove it.