For federal taxes: So, given that we paid all of our premiums with after tax dollars, had no claims, and no deductions ever, we should not pay taxes on any money paid back to us to close the policy less than or equal to the total premiums paid...correct?
For state of Minnesota taxes: Minnesota gave us a max of $200 deduction per year which is significantly lower that the premiums we paid. So, given that the total of the money paid back to us to close the policy was much less than the total premiums paid, we should not have to pay state taxes either on this money...correct?
Thanks
