Page 61 - Other Income for Individuals

Life Insurance Proceeds

02

Proceeds received in
installments

01 Proceeds not received in installments. I. Life Insurance Surviving Spouse 03
LIP

Surrender of policy for cash. Proceeds.

 If you surrender a life insurance policy for cash, you Surrender of policy for
must include in income any proceeds that are more than cash

the cost of the life insurance policy.
 In most cases, your cost (or investment in the contract) 04
is the total of premiums that you paid for the life
insurance policy, less any refunded premiums, rebates,
dividends, or unrepaid loans that weren’t included in
your income.
 You should receive a Form 1099-R showing the total
proceeds and the taxable part. Report these amounts on 59
lines 5a and 5b of Form 1040 or 1040-SR.