Cashed out a life ins. policy in my daughter's name. a portion is taxable. the 1099-r is in my daughter's SSN even though i paid all the premiums. can i claim the 1099-r

[LeeM · Accepted solution]

You can either file the income on your child's return or yours as long as that is the only income your child received. 

To find the child’s unearned income, look for Forms 1099-INT, 1099-DIV, and 1099-B with the child’s social security number.

Unearned income includes taxable interest, dividends, capital gains (including capital gain distributions) and distributions from trusts.

The child’s tax return only needs to be filed if the total unearned income is more than $850.

There is another option if your child is in this situation – the child’s parents may be able to elect to have the child’s income included on their tax return.  If the parents make this election, the child does not have to file. The tax ramifications of this election will be discussed in a future blog

[dayoung]

the income from the cashed-out life insurance policy is not the only income for my child, since the child is an adult and has other income.  My daughter did not contribute any money to the premium payments - only me.  Therefore, I should have to claim the income, not her.