1099-b, unclaimed property was from a life insurance policy

[spikedmd]

So question... my wife got a check and 1099-b for unclaimed property from the state of NJ. box 1d=$712; box2=longterm; box6=net proceeds... This was from some old life insurance policy she says. Is this taxable? I NOT, how should i enter this in turbotax to avoid that tax? Yes there was also a separate 1099-int with interest that I know is taxable. Thanks.

[DianeW777]

Yes, it does need to be included as income on your tax return.  

If the life insurance was purchased by your wife, then the taxable amount would be less than the proceeds in Box 1d. If she has no knowledge as to whether there was any cost for the policy then you will enter this as a sale of investment property and as a 1099-B, with a zero cost basis.  

1. Open your TurboTax return > Search (upper right) > type 1099b > Click the Jump to... link > Add Investment
2. Skip Import > Select 1099-B > Continue > Begin your entry
3. This sale does NOT include any other types of investments
4. No you didn't buy every investment on 1099-B (unless you know otherwise)
5. Continue to follow the screen prompts - You can select Bond as they type of investment
   1. The sales price will be $712 and it's very important you select 'long term' as the holding period (basis not reported to the IRS).
   2. Use Various as the acquired date by selecting 'Something other than a date'.