Would you walk me through how this is handled when filing my 2019 tax returns please. We did receive the 1099-R and it does indicate that the amount reported represents a policy gain resulting from dividends exceeding premiums. There was a 20% State tax withheld. I have a Box 1 gross distribution , a Box 2a taxable amount, and a box 5 amount. The dividends were put back into the policy.
Just enter the 1099-R exactally as it is.
The box 2a is the taxable amount that should be in the 1040 form line 4d is entered properly.
If the interview asks then life insurance is a non-qualified account.
Enter a 1099-R here:
Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).
OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.
Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.
[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]