I have cancelled my life insurance and received a check for it's surrender value. Do I have to declare this as income and do i have to pay taxes on this amount.
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Generally, when you cash out a whole life policy, there is nothing to report since the premiums paid over the life of your policy will generally be greater than your cash out. Also, you paid all those insurance premiums with after tax dollars, so there's nothing to report.
However, if you have dividends or other earnings that accumulate over time, they may be taxable.
Additional mention: Super Carl
Generally, when you cash out a whole life policy, there is nothing to report since the premiums paid over the life of your policy will generally be greater than your cash out. Also, you paid all those insurance premiums with after tax dollars, so there's nothing to report.
However, if you have dividends or other earnings that accumulate over time, they may be taxable.
Additional mention: Super Carl
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