topic Surrender life insurance policy in Get your taxes done using TurboTax

Surrender life insurance policy

dkm1943 — Thu, 06 Jun 2019 15:31:36 GMT

I surrendered a life insurance policy. Dividends were added to the policies value each year ( per the amount as stated on a yearly 1099 int). I paid income taxe on those dividends each year.

After cashing in the policy I received a 1099R which appears to have made no allowance for the increase in value of the policy due to those dividends. Since I have paid taxes on those dividends, it appears I am being taxed twice.

Why is there no way to deduct the value of the dividends ( that have already had income tax paid on them) from the cash value (received)?

Contact the issuer for clarification and a corrected for...

Critter — Thu, 06 Jun 2019 15:31:38 GMT

Contact the issuer for clarification and a corrected for if needed ... however those dividends probably paid part or all of the premiums instead of increasing the basis in the policy which is common.

I do not think so. It was a whole life policy with prem...

dkm1943 — Thu, 06 Jun 2019 15:31:39 GMT

I do not think so. It was a whole life policy with premiums fixed for the life of the policy.

Ask the payer for more info or a corrected form.

Critter — Thu, 06 Jun 2019 15:31:41 GMT

Ask the payer for more info or a corrected form.