Can I deduct income identified on a 1099R form from cashing in a whole life insurance policy on my Form IL-1040
Answer #483 -- ( Published 02/21/2006 10:25 AM | Updated 07/12/2017 10:41 AM )
Is income identified on a 1099R form from cashing in a whole life insurance policy taxable as income on my Form IL-1040, or can I deduct it on Line 5?
Only if the insured is terminally ill and redeemed the policy to receive an accelerated payment may the income be subtracted on Form IL-1040, Line 5. Otherwise, the income is taxable and may not be subtracted on Form IL-1040.
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