Mainecat
Level 3
‎03-11-2023 04:26 PM

I have a 1099R with $100 in Box 1, $100 in Box 8 and zero in box 2a with a W in Box 7.  I thought these were payments for purchasing qualified long term care ins and were nontaxable, but proseries is transferring the $100 from Box 1 to Form 1040 line 4b taxable IRA distributions.  Am I missing a step or am I wrong and they are in fact taxable?

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abctax55
Level 15
‎03-11-2023 05:10 PM

Paging @Skylane 

HumanKind... Be Both
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Skylane
Level 11
Level 11
‎03-11-2023 05:47 PM

I agree that code w should not be included. It’s usually a charge against a policy for a rider like accelerated benefit. The insurer would be able to identify it. It’s a small amount so Id probably exclude it but let the client know it’s not certain. 

If at first you don’t succeed…..find a workaround
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