m3millie
New Member

I cashed in a life insurance policy. Do I claim it on my taxes? I did not receive a tax form from the company.

 
AmyT
New Member

Get your taxes done using TurboTax

If this was a policy on which you paid the premiums, taking the cash value of the policy is not taxable income.

The cash value of the policy is essentially the amount of premiums paid in excess of the cost of purchasing the policy, which is why it builds over time.  As long as you (as opposed to an employer) paid the premiums, you are getting your own money back.

View solution in original post

Get your taxes done using TurboTax

What if your employer paid the premiums and cashed in the policy and gave you the cash value?