A friend received a 1099R from a life insurance policy from grandfathers death?

Do I file this under distributions from pensions, retirement etc? Ive never had this before, as ive filed the 1099R many times but they were from retirement benefits or IRA's. Also, they have a K-1 from a partnership but the amount is in ( ) doesn't that mean a negative?? All "help" is appreciated.

Update:

The 1099R says on the upper right hand corner, "Distributions from pensions,annuities, retirement, profit sharing plans, iras, insurance contracts, etc... so should it still go under the same since insurance is included?

3 Answers

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  • 9 years ago
    Favorite Answer

    Yes, just read the 1099-R and report the income accordingly. Check the distribution code. I am assuming it will be 4 because it's a distribution due to death. The 1099 will tell you if it is taxable by providing the taxable amount. Anyway, this income will show on the 1040 as pension income since it's not from an IRA. As for the k-1, depends on what type of income you're talking about. Is it business income? Interest income? The symbol () does mean negative income but where to report it on the 1040 depends on what type of income on the K-1 is being reported from the partnership. The K-1 is the statement from the partnership that gives the partner what share of income belongs to the partner and is responsible for reporting on his 1040. It's pass through income. Since it's negative income I am assuming it is ordinary business income which may need to be reported on SCH E. So, it goes into another array of forms.

  • MARK
    Lv 7
    9 years ago

    A 1099R is for retirement income from pensions. Any dollar amount of money reported on a tax form (like your K-1) that is in (parenthesis) is a negative number... A loss!

  • Bobbie
    Lv 7
    9 years ago

    And your friend may even need to seek some good professional assistance with this years income tax return for the K-1 Numbers and where to correctly report the amounts on which income tax return for the tax year.

    1099-R stands for retirement income of some sort for this purpose.

    Hope that you find the above enclosed information useful. 03/31/2012

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