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posted Feb 7, 2024 2:17:19 PM

Reporting Interest from Life Insurance Benefit - No 1099-INT

My mother passed last year, (2023), and I received Life Insurance benefits from two companies. Both have stated they will not be sending a 1099-INT. My understanding is I still need to self-report, (one had $123.xx in interest on top of the benefit, the second had less than $1 in interest). Since I have no 1099-INT to refer to, do I simply use the prompts to type the name of the insurance company and the amount attributed to interest, (ignoring the actual benefit amount itself of course)? Thank you!

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1 Best answer
Expert Alumni
Feb 7, 2024 2:26:23 PM

Yes, you should report the interest. Follow these steps

  1. Jump to the 1099-INT and mark that you have one. 
  2. Instead of download, select I'll type it in myself. 
  3. Enter the issuer of the interest and the amount
  4. Continue
  5. Select none of these apply
  6. Continue
  7. Any interest income from another bank or brokerage? Select No

You do not need to report the $1 of interest from the second policy. The IRS uses $10 for when to report interest with banks so that should work here as well. My condolences on your loss.

1 Replies
Expert Alumni
Feb 7, 2024 2:26:23 PM

Yes, you should report the interest. Follow these steps

  1. Jump to the 1099-INT and mark that you have one. 
  2. Instead of download, select I'll type it in myself. 
  3. Enter the issuer of the interest and the amount
  4. Continue
  5. Select none of these apply
  6. Continue
  7. Any interest income from another bank or brokerage? Select No

You do not need to report the $1 of interest from the second policy. The IRS uses $10 for when to report interest with banks so that should work here as well. My condolences on your loss.