Discussion:Form 8880, Line 4 question
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Discussion Forum Index --> Basic Tax Questions --> Form 8880, Line 4 question
Discussion Forum Index --> Tax Questions --> Form 8880, Line 4 question
| 14 October 2009 | |
| Form 8880, Line 4 question: Does the 1099R Gross Distribution (box 1) or Taxable Amount (box 2a) go on line 4 of Form 8880?
I have a 1099-R with total distribution from a cash surrender value of a life insurance policy. Box 5 of the 1099-R is "Employee contributions or insurance premiums". I would think that premiumns would not be counted as part of the distribution on Form 8880 line 4. The Gross Distribution minus the premiums (box 5) equals the Taxable Amount. So, wouldn't just the Taxable Amount go on Line 4 of Form 8880? | |
| 15 October 2009 | |
| Was the distribution from a qualified retirement plan? A distribution from a life insurance policy may be reported on form 1099-R, but is not necessarily a retirement plan distribution. See the instructions for line 4. | |
| 15 October 2009 | |
| Thanks for your response, Captcook.
In this case, the 1099-R is reporting the cash-out from a life insurance's cash surrender value. It is not from a qualified retirement plan. I did read the instructions for line 4 of Form 8880 and it does not mention this situation in includable or non-includable amount. Are you suggesting that non of the proceeds reported on a 1099-R from a life insurance policy would be included on the 8880? | |
| 15 October 2009 | |
| That is what I'm suggesting. The credit is related to funds moving into and out of retirement accounts, not those reported on a 1099-R. It doesn't appear you have anything to report on Line 4. | |
| 15 October 2009 | |
| I agree, and that's the doubt I had. What was throwing me off was that my Lacerte program was adding the life insurance proceeds to line 4 of 8880 and I couldn't find any input that would cause that not to happen. I called tech support and even sent them my file to review, the support person did not help. However, I just now found that "check-off" box I was looking for, in case anyone using Lacerte has the same questions. It is in the "Pension, IRAs" screen number 13.1 under "Other Information heading". The box that needs to be checked is: "Distributions not from IRA or elective deferral plan (8880)." Thanks again for your responses, Catcook, it helped keep my doubt alive and put on my glasses for a closer look. | |
