01-26-2005, 05:00 AM
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 Re: Insurance Policy income "crlackey" <clackey3[at]rnc3.com> wrote: - quote - > I want to terminate a Term Insurance Policy on my adult son.
No. Policy dividends are an adjustment of policy premiums> Policy was taken out many years ago. > I will receive some cash for it. > Will that cash be taxable? ...and how will the income be > reported to me? > Here is the exact words on the bill. > "Dividend Information -- > You elected to leave dividends with the company to > accumulate interest. > Your total dividend accumulation is $3,079.29. This > includes interest (at 6.5% rate) of 183.29 and your current > dividend of 76.20." > I have already received the 2004 1099 for this policy, as I > have every year for over 23 years. > I already knew that policy proceeds would not be income, but > what about the dividends? being refunded to you. The premiums are never deductible, the refund of same is not taxable. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
01-25-2005, 06:10 AM
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| Insurance Policy income I want to terminate a Term Insurance Policy on my adult son. Policy was taken out many years ago. I will receive some cash for it. Will that cash be taxable? ...and how will the income be reported to me? Here is the exact words on the bill. "Dividend Information -- You elected to leave dividends with the company to accumulate interest. Your total dividend accumulation is $3,079.29. This includes interest (at 6.5% rate) of 183.29 and your current dividend of 76.20." I have already received the 2004 1099 for this policy, as I have every year for over 23 years. I already knew that policy proceeds would not be income, but what about the dividends? Carl << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| income, insurance, policy |
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