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"Return of principal" is not a a taxable event (i.e. not income); it is not reported on your tax return.
The most common example would be cashing in a Certificate of Deposit; only the interest would get reported on the tax return, not the return of principal.
"Return of principal" is not a a taxable event (i.e. not income); it is not reported on your tax return.
The most common example would be cashing in a Certificate of Deposit; only the interest would get reported on the tax return, not the return of principal.
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