44Apple
02-25-2023, 05:20 PM
My wife's mother had a $5000 whole life policy on her. My wife's brother, who had taken over their mother's finances, took a loan of $4175 from it and did not pay it back.
After their mother died, my wife, as sole beneficiary of it, received a payout of $421.
My wife recently received a 1099-R and a 1099-INT from the insurance company re the policy.
Rounding off figures, the 1099-R has amounts of $5070 in box 1, $640 in box 2a, $40 in box 4, and $450 in box 5. Box 7 has Distribution code 7.
The 1099-INT lists $120 in box 1.
I entered all the figures on our joint Federal Turbo Tax return that I am working on. They were the last figures I entered. Before, we owed $725. After entering that 1099-R and 1099-INT, the owed amount jumped to about $850.
I don't mind filing this return but would like to know what I am looking at. None of these figures make sense to me. I thought life insurance payouts were tax free.
Would appreciate any responses from tax people out there.
Thanks.
After their mother died, my wife, as sole beneficiary of it, received a payout of $421.
My wife recently received a 1099-R and a 1099-INT from the insurance company re the policy.
Rounding off figures, the 1099-R has amounts of $5070 in box 1, $640 in box 2a, $40 in box 4, and $450 in box 5. Box 7 has Distribution code 7.
The 1099-INT lists $120 in box 1.
I entered all the figures on our joint Federal Turbo Tax return that I am working on. They were the last figures I entered. Before, we owed $725. After entering that 1099-R and 1099-INT, the owed amount jumped to about $850.
I don't mind filing this return but would like to know what I am looking at. None of these figures make sense to me. I thought life insurance payouts were tax free.
Would appreciate any responses from tax people out there.
Thanks.