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knowles22
New Member

I cash in a life ins policy on my ex husband how do i report that as income

it was cash surrender value American General Life Insurance Company did not sent me a 1099??
1 Best answer

Accepted Solutions
MargaretL
Employee Tax Expert

I cash in a life ins policy on my ex husband how do i report that as income

If the cash value payout exceeds the contributions (what was paid in) the excess would be considered taxable and should be reported. At this point, the insurance company would have issue a 1099-R form which you should report on your tax return.  They issue the form by Jan 31st... you may want to wait until mid February with the tax preparation. 

You don't have to report it, if there is no gain on the payout; not forms will be issued. 

If you are unsure, you may want to call the administrator and verify if 1099-R will be issued.

View solution in original post

1 Reply
MargaretL
Employee Tax Expert

I cash in a life ins policy on my ex husband how do i report that as income

If the cash value payout exceeds the contributions (what was paid in) the excess would be considered taxable and should be reported. At this point, the insurance company would have issue a 1099-R form which you should report on your tax return.  They issue the form by Jan 31st... you may want to wait until mid February with the tax preparation. 

You don't have to report it, if there is no gain on the payout; not forms will be issued. 

If you are unsure, you may want to call the administrator and verify if 1099-R will be issued.

View solution in original post

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