Life Insurance Cash Out

[sweeper204]

My employer kept a cash value life insurance policy on me for years.  I left his employment and he cashed out this policy and gave me the cash value.  How do I claim this on my taxes?  His name was on the check, he endorsed it over to me and I deposited it.  Turbo Tax ask for a form to enter this and I don't have one and don't know what to do.

[Vanessa A · Accepted solution]

This would be entered as Other Taxable income.  You can do this without any forms by selecting the following:

• Federal
• Income and Expenses
• Scroll down to Less Common Income and click Show More
• Start next to Miscellaneous Income
• Start next to Other Reportable Income

This will put it on line 8z of your schedule 1 as other income. 

[Mike9241 · Accepted solution]

I'm not so sure as to you having taxable income since the proceeds of the policy were paid to him and he gave them to you. 

see this about keyman life insurance

https://www.valuepenguin.com/life-insurance/key-man-insurance#tax 

[sweeper204]

Hi Vanessa,  Excellent, thank you so much for the help!

[sweeper204]

Thank you.