Code "4" life insurance proceeds is recorded as income on 1040.
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If they cashed out a policy instead of making the supreme sacrifice, part of it could indeed be taxable.
If they cashed out a policy instead of making the supreme sacrifice, part of it could indeed be taxable.
What do you mean "how"? You enter the 1099R into the program like any other tax document...is it not appearing on the front page of the 1040?
Which version of ProSeries are you using?
Yes It is entered but is it supposed to be taxable?
Welcome to the Intuit World of Zombie Posts. Once there was a time when something posted last week could not be found with a Search. Now you can probably read comments about what happens when the 16th Amendment goes into effect.
@IRonMaN gets half credit for his comment. What someone should have said years ago, was "Life insurance companies sell annuities. Annuity distributions are either partially taxable (if the buyer had some basis in the contract) or fully taxable (if it was an annuity inside an IRA, which usually doesn't make sense but happens a lot anyway because that's where the commissions are).
And reading the existing comments will help see when we asked for more details.
Who Died?
Who got the money and why?
You should not ask, "Is this taxable" without perspective.
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