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Get your taxes done using TurboTax
I am in agreement that the earnings on the distributions should be taxed, but that the dividends are considered a return of premium and should be excluded from taxation. That is the position I have taken in a recent letter to the insurance company. The tool is fairly simple, but the answer is that the proceeds should not be taxed. We shall see what the insurance company says. I will post their response whenever I get it.
‎February 20, 2023
3:30 PM