My aunt passed and I received a 1099-R showing $559 federal tax withheld on $16088 gross distribution and box 2a shows a taxable amount of $5588. Do I add this to income?

I am on a disability pension and just need to know if I don't include this since it is a death benefit paid from a life insurance company or if I list this 1099-R with income. I see that death benefits are generally not taxed. She was in PA and I am in OH. Thank you.

3596

Expert Alumni

Jan 26, 2025 9:32:21 AM

Yes, you will add this as income in TurboTax. If it was a death benefit from an annuity, part of it is taxable.

If you receive a single-sum distribution from a variable annuity contract because of the death of the owner or annuitant, the distribution is generally taxable only to the extent it is more than the unrecovered cost of the contract. Death benefits.

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My aunt passed and I received a 1099-R showing $559 federal tax withheld on $16088 gross distribution and box 2a shows a taxable amount of $5588. Do I add this to income?