Surrendered Life Insurance Policy in 2025 and recieved statement showing breakdown of the surrender value:
Gross policy value: $8,506.00
Plus Dividends on depoosit (Accum): $2,208.82
Plus settlrment Dividend: $382.82
Loan Balance: $0.00
Net Cash Surrender Value: $11,097.13
Less unpaid premium: $13.12
Federal and State tax: $0.00
Payment Amount: $11,084.01 (I received a check for this amount)
Another form shows Total Premiums Received: $12,052.78
Questions:
Should I receive a 1099-R?
Should I receive a 1099-DIV?
I also took a dividend cash withdrawal about 30 years ago. Should that have reduced the cost basis at that time 30 years ago and I paid the taxes on this. Will this even 30 years ago effect the current surrender values?
The Insurance company tells me I may not get a 1099-R but they are not sure if I will get one or not get one. They say it looks like no taxes would be due thus no 1099-R needs to be included in tax return. are they correct?
Thanks in advance....
