If you did not pay the insurance it would not be an expense.
The IRS may count a debt written off or settled by your creditor as taxable income.
Because you no longer have to pay the full amount of the debt, the IRS treats the forgiven amount as gained income, for which you should pay income taxes. (That additional income might also affect your state taxes.)
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Guide to Debt Cancellation and Your Taxes - TurboTax Tax ...
Video: Debt Cancellation and Your Taxes ... - TurboTax
