You would list a 1099-MISC from a cancer policy as taxable income if you paid the premium with pre-tax monies. If your insurance premiums were paid with after-tax monies, then the lump sum would not be taxable because they are considered a form of health/disability insurance.
Form 1099-MISC is used to report miscellaneous income for individuals and companies who have been paid $600 or more in non-employee service payments during a calendar year.
To enter a Form 1099-MISC into TurboTax you can:
- Click on the "Search" icon
- Enter "1099-MISC" in the search box
- Select "Jump to form 1099-misc"
- It will take you to a screen that says, "Did you get a 1099-MISC?
- Select "Yes"
- Enter your Form 1099-MISC information
- Answer all follow-up screens
If you believe your Form 1099-MISC was issued incorrectly, you should talk to the issuer of your form and get a corrected Form -1099-MISC if necessary.
Click here for Publication 525 (2024), Taxable and Nontaxable Income.
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