adifusco
Level 2

Client was terminally ill in 2021 so she sold her life insurance.  She received a 1099-LS and 1099-SB.  There is an amount in Box 1 for both forms.  How do I account for this on form 1040?  A tax attorney told her the sale of the life insurance policy was not taxable due the terminal illness.  In 2022 she is still battling cancer.

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