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Mark D
Mark D, Enrolled Agent
Category: Tax
Satisfied Customers: 1280
Experience:  MBA, EA, Specializing in Business and Individual Tax Returns and Issues
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My mother passed away in Florida. I transferred the sale of

Resolved Question:

My mother passed away in Florida. I transferred the sale of her home and checking account to an asset protection agency who then transferred the funds to an annuity. My sister and I had been receiving small dividend checks until the mature dates of October and November of 2009 when we received lump sums of less than 100,000 each. This is our in heritance. I was told I did not need to have taxes deducted. I have received 1099 forms. Please advise.
Submitted: 6 years ago.
Category: Tax
Expert:  Mark D replied 6 years ago.
Customer

What 1099 forms did you receive and what amounts did they state?

Regards,

Mark D
Customer: replied 6 years ago.

1099r

box 1

87687.50

box 2 a

651.93

box 5

87035.

box 7

4

 

1099r

box 1 11879.71

box 2a 93.88

box 5 11785.83

box 7 4

 

Expert:  Mark D replied 6 years ago.
maude,

These seem correct. Basically you are only paying tax on the amounts listed in Box 2a. The rest is considered a return of contribution. Reported on Form 1040 as such:

Form 1040, line 16a - $99,568
line 16b - $746

Please let me know if you have further questions.

Regards,

Mark D
Customer: replied 6 years ago.
So I would be required to use form 1040 as opposed to form 1040a?
Expert:  Mark D replied 6 years ago.
Customer
You could use Form 1040A if otherwise allowed. The amounts above would be on lines 12a and 12b.

Regards,

Mark D
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