Question:

If I "cashed out" part of a life insurance policy, do I have to report that on my tax return next year? ?

by  |  earlier

0 LIKES UnLike

Even if it's for a smaller amount like $500-1000?

 Tags:

   Report
Answer The Question I've Same Question Too

2 ANSWERS

Sort By: Date  |  Rating

  1. You will only be taxed on the portion of the proceeds that represent interest or dividends earned.  This will be reported to you on a Form 1099R sent by the insurance company.


  2. You only have to pay taxes on the portion above the premiums you paid in.  The insurance company should provide you with the proper tax documents.  
You're reading: If I "cashed out" part of a life insurance policy, do I have to report that on my tax return next year? ?

Question Stats

Latest activity: earlier.
This question has 2 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.
Register Now
Unanswered Questions