I received a Surrender Statement of Proceeds for a Mass Mutual Whole Life Policy is this income? Where do I enter the Dividend amount. Did not receive 1099-DIV.

[PhyllisG · Accepted solution]

Tax-exempt interest and dividend income is usually reported on year-end statements or a statement from your broker or mutual fund company. You will not receive a Form 1099-DIV for this type of dividend because the insurance divided is usually not taxed.

You will need to report the total cash surrender value if the value amounts to more than the premiums paid, and you surrendered or canceled the policy. The  excess is then considered earnings and taxable income and may be considered a taxable gain.

For example, you paid $1,000 in premiums for the last 10 years ($10,000) and your cash surrender values is $20,000, then you will pay taxes on $10,000 ($20,000 - $10,000). Usually, you will receive a Form 1099-R to report the information.