topic My 1099-Rs are both life insurance proceeds, as I was a beneficiary. Mine is NOT retirement!! Is your program putting me in some incorrect category? Catholic Life Insu in Retirement tax questions

My 1099-Rs are both life insurance proceeds, as I was a beneficiary. Mine is NOT retirement!! Is your program putting me in some incorrect category? Catholic Life Insu

valerie-coyle — Tue, 04 Jun 2019 00:22:59 GMT

Form 1099-R is used to report distributions from pensions...

LindaA — Tue, 04 Jun 2019 00:23:00 GMT

Form 1099-R is used to report distributions from pensions, annuities, retirement or profit-sharing plans, IRAs, insurance contracts, etc.

Proceeds from life insurance policies are generally not taxable to the recipient, unless the contract itself has been sold or there is something unusual about the policy. Life insurance companies also sell certain financial products that are sometimes marketed as "life insurance" policies but do not meet the strict legal definition of such.

Your best source of determining the taxability of the proceeds in this case is to look at the Form 1099-R itself. There should be a payout amount in Box 1 (Gross Distributions). Is there a similar sum in Box 2a (Taxable Amount), or is the Box 2b (Taxable Amount Not Determined) checked instead?

If the former, then it is a taxable policy; if the latter, then it probably is not a taxable payout, and is indeed a life insurance policy. Regardless, you'll need to enter the Form 1099-R on your tax return this year as the recipient.

For further details or an explanation about the proceeds, contact the insurance company itself. You might also find this IRS FAQ helpful: http://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions...

Re: Form 1099-R is used to report distributions from pensions...

derFalke — Sun, 05 Apr 2020 19:11:30 GMT

I am not sure that the answer was responsive to the queston:

1. The link is broken, tried it twice. Result "Not Found"

2. I am aware that the CSV of a life insurance contract in excess of the total premiums paid is taxable as ordinary income. The 1099-R that I received from the insurance company shows all of that. THE ISSUE is that TurboTax shows the entries under the heading: Retirement Plans and Social Security. This ordinary life policy was bought by me, the premiums paid by me, and it has nothing to do with any retirement plan of any sort nor is it related to Social Security.

THE QUESTION is will this categorization raise undue attention from the IRS?

Re: Form 1099-R is used to report distributions from pensions...

Jackary111 — Mon, 20 Apr 2020 21:37:42 GMT

https://www.irs.gov/faqs/interest-dividends-other-types-of-income/life-insurance-disability-insurance-proceeds