You mention "tax deduction" but there is not one with this type of activity, typically.

You should use the 1099-R; here is the Help article for you to read, follow which scenario applies. Also, check Eligibility for the exclusion. And lastly, you need to know if this person has Basis.

Your question seems a bit too vague to confirm you checked all of those details. The article will be helpful.

https://proconnect.intuit.com/community/individual/help/proseries-form-1099-r-faq-s/00/4853