Janitor Bob Posted March 16, 2014 Report Share Posted March 16, 2014 New Client....Not a lot going on....SSA-1099, two 1099-Rs, and a 1099-MISC.....easy-peezy but...also included in his papers was a check stub/statement for a $1,274.93 check he received from Prudential. The reason for the check is stated as "Surrender of Paid-up Additional Insurance". What is this? I know very little about insurance. Neither of his 1099-Rs are for this amount. advice? Is this a taxable issue? Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 16, 2014 Report Share Posted March 16, 2014 This sounds like an insurance policy the taxpayer owned and he surrendered the value of the policy thus receiving a check for said surrender value. Not knowing what the policy was or how it was funded makes it difficult to answer. However, if this was a life insurance policy and the premium paid with post tax funds then it is not taxable. If there were any other type of policy/annuity etc that was surrendered that earned interest then the interest would be taxable. I kind a doubt this is interest but then again, can't be sure. Ask your client some additional questions as to why he placed this stub with the rest of his tax documents. 1 Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 16, 2014 Report Share Posted March 16, 2014 when was the check dated, might be 2014 thus nothing to deal with this year and, next year you might have the 1099r Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted March 16, 2014 Author Report Share Posted March 16, 2014 OK...I found several more check stubs/statements...all of them have 2013 dates...all have the same Reason for Check as mentioned above...total combined amount is $1901.68. I also see that one of his 1099-R's is for PRUCO Life Insurance...which I just realized is Prudential....However, the amount on the 1099-R is only $1,166.80 Is it likely that this 1099-R from Pruco is for these payments.....and part of it being not taxable as return of premium? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 16, 2014 Report Share Posted March 16, 2014 Very likely. Quote Link to comment Share on other sites More sharing options...
JohnH Posted March 16, 2014 Report Share Posted March 16, 2014 The 1099-R should have an account number at the bottom. If an account number is also showing on the check transmittals, that should close the loop for you. Quote Link to comment Share on other sites More sharing options...
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