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1099-LS Premiums Paid

parvitstax
Level 5

My client received a 1099-LS indicating X proceeds. Another post on these forums suggested using this advice https://ttlc.intuit.com/community/retirement/discussion/where-to-i-put-in-information-for-1099-ls-an...

 

I understand 1099-LS proceeds are not taxable but the link indicates there may be losses that a tax payer can benefit from if their premiums paid were more than the proceeds. This is the situation I have. Is that a true statement? 

My example proceeds $80k and premiums paid since inception are $130k. 

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Accepted Solutions
qbteachmt
Level 15

"but the form does not exist in the search."

The form 1099-LS is not necessarily reportable. It's the scenario that applies which may be reportable. There might be ordinary income, capital gain, capital loss, or it might be a viatical sale. That's why you would read the resources and links provided, to evaluate what applies.

If it is not reportable, there is nothing to be entered. Otherwise, there is a worksheet, not a form, for the data.

*******************************
"Level Up" is a gaming function, not a real life function.

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6 Comments 6
Terry53029
Level 14
Level 14

Proceeds from selling life insurance policy's may or may not be taxable. see link. https://www.irs.gov/pub/irs-drop/rr-20-05.pdf.

https://www.irs.gov/pub/irs-drop/rr-09-14.pdf.

Here is a link from The Tax Advisor which may be easer to read.

https://www.thetaxadviser.com/issues/2009/aug/tworecentrevenuerulingsclarifytaxtreatmentoflifesettle...

qbteachmt
Level 15

"Another post on these forums"

Nope, that's not "these" forums. That's a TurboTax forum. You posted in Tax Talk. Which program are you using: Lacerte, ProSeries or ProConnect (the older Intuit Tax Online, renamed)?

 

*******************************
"Level Up" is a gaming function, not a real life function.
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parvitstax
Level 5

It's odd how this is an actual tax form but ProSeries has not tools to find anything related to it. 

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qbteachmt
Level 15

"but ProSeries has not tools to find anything related to it."

I'm pretty sure you have access to a 1099-B worksheet, which includes "not reported on 1099-B" type of capital gain/loss.

*******************************
"Level Up" is a gaming function, not a real life function.
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parvitstax
Level 5

Yes, but the form does not exist in the search.

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qbteachmt
Level 15

"but the form does not exist in the search."

The form 1099-LS is not necessarily reportable. It's the scenario that applies which may be reportable. There might be ordinary income, capital gain, capital loss, or it might be a viatical sale. That's why you would read the resources and links provided, to evaluate what applies.

If it is not reportable, there is nothing to be entered. Otherwise, there is a worksheet, not a form, for the data.

*******************************
"Level Up" is a gaming function, not a real life function.