Q: Why am I receiving a 1099 for these benefits?
A:
The critical illness plan makes a lump sum payment when there is a claim. Lump sum indemnity benefit payments like critical illness are sometimes taxable when the premium is taken out of a member’s paycheck on a pre-tax basis. Allstate cannot withhold any money from a member’s claim check so instead Allstate must send a 1099.
Q: Do I need to report this on my taxes?
A:
For any tax related questions, contact a tax advisor.
Q: Who can I call with questions about my 1099?
A:
For questions about how it affects your taxable income, contact a tax advisor. For questions about the form itself and benefits it relates to, call Allstate customer service at 1-866-232-1517.
