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My client's father passed away in 2020. The father had a life insurance and a distribution was sent to my client. 1099R also issued and the recipient's name is my client's name on the form. I am just wondering is this income taxable?
On the 1099R box 2 there is a taxable amount. But base on the article i found on IRS says "
- Generally, life insurance proceeds you receive as a beneficiary due to the death of the insured person, aren't includable in gross income and you don't have to report them. "
So I am confused now is this 1099R income taxable or not?
Thank you very much for the help
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1099-Rs are not issued for life insurance. This sounds like an annuity. It is taxable.
The more I know the more I don’t know.
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And annuities are mostly sold by life-insurance companies. They're already in the business of predicting life expectancy and investing money for the rest of a customer's life.
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The good news is, if the deceased had life insurance in addition to the annuity, your client should pursue the rest of their money.
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thank you
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You're welcome
The more I know the more I don’t know.
