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Retirement tax questions
If you did not receive any cash for the surrender it means there was no value in the policy. Generally speaking, any gain in your policy will be taxed as income,. The amount of money you put into your life insurance policy, known as the cost basis, is not subject to taxation because after-tax dollars were used to fund the policy.
The taxable amount should be in box 2.
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March 8, 2021
6:43 PM