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WHERE to Report Gains from Surrendered Life Insurance?

Not sure where to report gain from a surrendered life insurance policy.
They will not send me a 1099-R. Just a sheet showing how much I contributed to the policy and how much I was paid for it (I have gains)
I tried entering it here (IRA, 401(k), Pension Plan Withdrawals (1099-R)), however, when I did that, it said I had to pay a penalty for early IRA withdrawal (which I am NOT doing)

Isn't there a way to just enter the gains as interest income or investment income (as that is what it has technically been in my case)??

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1 Reply
SusanY1
Employee Tax Expert

WHERE to Report Gains from Surrendered Life Insurance?

Since your insurance company will not issue a 1099, you should report this in TurboTax as "other income", as this type of distribution is taxed as ordinary income.  

In TurboTax you will find this under Less Common Income, then Other Reportable Income.   Report only the gain amounts here.

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