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#6
05-21-2008, 06:45 PM
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 Re: Taxable Life Insurance Dividends In article <Xns9AA5611DD5DF2avocatstuyahoofr[at]130.133.1.4> , Stuart Bronstein <spamtrap[at]lexregia.com> wrote: - quote - > Bill Brown <brownwp[at]longwood.edu> wrote:
Because it's in excess of the total paid.> > William Brenner <wbren...[at]nospamplease.net> wrote: > > > A letter from a major life insurance company begins with (their > > > words) "Good news", and goes on to explain that a very old whole > > > life policy has reached the point where the total dividends > > > received have equaled all of the premiums paid. > > Line 21. Despite what the insurance company calls the payment it > > is not a dividend for federal tax purposes. > Why isn't it considered a refund? If you buy something from a store for $20, with a $10 discount (so you pay $10) and a $15 mail-in rebate, you have to report the $5 net you receive as taxable income. Seth -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#5
05-21-2008, 04:32 PM
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| Re: Taxable Life Insurance Dividends Bill Brown <brownwp[at]longwood.edu> wrote: - quote - > William Brenner <wbren...[at]nospamplease.net> wrote:
Why isn't it considered a refund?> > A letter from a major life insurance company begins with (their > > words) "Good news", and goes on to explain that a very old whole > > life policy has reached the point where the total dividends > > received have equaled all of the premiums paid. > > > The "good news" continues with the explanation that the above > > means that $600+ of this year's $1100+ dividend will be taxable > > income. (The tax can be deferred by purchasing additional paid up > > insurance, which I choose to not do.) > > > The question is: Is this Line 21 Other Income? *If not, where is > > it entered on Form 1040? > Line 21. Despite what the insurance company calls the payment it > is not a dividend for federal tax purposes. Stu -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#4
05-19-2008, 04:19 AM
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| Re: Taxable Life Insurance Dividends On May 17, 9:12*pm, William Brenner <wbren...[at]nospamplease.net> wrote: - quote - > A letter from a major life insurance company begins with (their words)
Line 21. Despite what the insurance company calls the payment it is> "Good news", and goes on to explain that a very old whole life policy > has reached the point where the total dividends received have equaled > all of the premiums paid. > The "good news" continues with the explanation that the above means that > $600+ of this year's $1100+ dividend will be taxable income. (The tax > can be deferred by purchasing additional paid up insurance, which I > choose to not do.) > The question is: Is this Line 21 Other Income? *If not, where is it > entered on Form 1040? not a dividend for federal tax purposes. -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#3
05-18-2008, 07:39 PM
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| Re: Taxable Life Insurance Dividends "William Brenner" <wbrenner[at]nospamplease.net> wrote - quote - > a very old whole life policy has reached the point where
Pub. 17 (2007), page 64 and the 1040 instructions for Line> the total dividends received have equaled all of the > premiums paid. snip > The question is: Is this Line 21 Other Income? If not, > where is it entered on Form 1040? 21 say Line 21. -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#2
05-18-2008, 04:15 PM
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| Re: Taxable Life Insurance Dividends wbrenner[at]nospamplease.net (William*Brenner) William Brenner wrote: - quote - > OP elided, for brevity
I was just about to respond with that very same opinion, except I wasn't> It just occurred to my tired brain that, as it is a > DIVIDEND, Schedule B might be a another > possibility. I suppose it would be too much to > expect that it would be a "qualified" dividend. > What say thee? sure of the "qualified" issue -- and would suggest you either contact the company, or perhaps await the formal 1099-DIV, which will undoubtedly be coming. Bill -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#1
05-18-2008, 12:43 PM
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| Re: Taxable Life Insurance Dividends William Brenner <wbrenner[at]nospamplease.net> wrote in news:MWNXj.35707$7a.20893[at]bignews1.bellsouth.net: - quote - > William Brenner wrote: > > A letter from a major life insurance company begins with (their > > words) "Good news", and goes on to explain that a very old whole life > > policy has reached the point where the total dividends received have > > equaled all of the premiums paid. > > > The "good news" continues with the explanation that the above means > > that $600+ of this year's $1100+ dividend will be taxable income. > > (The tax can be deferred by purchasing additional paid up insurance, > > which I choose to not do.) > > > The question is: Is this Line 21 Other Income? If not, where is it > > entered on Form 1040? > > > Thank you. > > > Bill > > It just occurred to my tired brain that, as it is a DIVIDEND, Schedule > B might be a another possibility. I suppose it would be too much to > expect that it would be a "qualified" dividend. > What say thee? Wait or ask for a 1099? -- Best regards Han email address is invalid -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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05-18-2008, 04:07 AM
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| Re: Taxable Life Insurance Dividends William Brenner wrote: - quote - > A letter from a major life insurance company begins with (their words)
might be a another possibility. I suppose it would be too much to> "Good news", and goes on to explain that a very old whole life policy > has reached the point where the total dividends received have equaled > all of the premiums paid. > The "good news" continues with the explanation that the above means that > $600+ of this year's $1100+ dividend will be taxable income. (The tax > can be deferred by purchasing additional paid up insurance, which I > choose to not do.) > The question is: Is this Line 21 Other Income? If not, where is it > entered on Form 1040? > Thank you. > Bill It just occurred to my tired brain that, as it is a DIVIDEND, Schedule B expect that it would be a "qualified" dividend. What say thee? -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#-1
05-18-2008, 01:12 AM
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| Taxable Life Insurance Dividends A letter from a major life insurance company begins with (their words) "Good news", and goes on to explain that a very old whole life policy has reached the point where the total dividends received have equaled all of the premiums paid. The "good news" continues with the explanation that the above means that $600+ of this year's $1100+ dividend will be taxable income. (The tax can be deferred by purchasing additional paid up insurance, which I choose to not do.) The question is: Is this Line 21 Other Income? If not, where is it entered on Form 1040? Thank you. Bill -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
| Tags |
| dividends, insurance, life, taxable |
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