DAYDREAMER
Recycles dryer sheets
- Joined
- Mar 26, 2008
- Messages
- 413
My dad requested payout on a death benefit from zurich after my mom died on what seems to be an IRA my mom had. My dad was the beneficiery on this benefit. He recently got a 1099-R form that showed the amount he recieved was taxable on line 2a, but line 2b is checked for taxable amount not determined, and line 7 is filled in with code 4, and ira/sep box is checked.
My understanding of death benefits is that they are not taxable. However the more research i do, i'm finding all death benefits are not treated the same. I am trying to figure out if my dad has to pay taxes on payout amount.
Has anybody dealt with this issue? Any advice where to look or questions to ask myself would be appreciated.
PS: I used the search function and did not find what I needed.
My understanding of death benefits is that they are not taxable. However the more research i do, i'm finding all death benefits are not treated the same. I am trying to figure out if my dad has to pay taxes on payout amount.
Has anybody dealt with this issue? Any advice where to look or questions to ask myself would be appreciated.
PS: I used the search function and did not find what I needed.