Do I need to include dividends from an insurance policy as income IF the money is used to pay the dividend and/or put in to additional paid up insurance?

panarl · ‎April 13, 2023

Sorry, the money is used to pay the Premium not the dividend.

ronmcnaughton · ‎April 13, 2023

No. I have several policies that I have set up like this and I have never had to claim it as income.

There might be a value limit, so I would check with a tax consultant to be certain.

MarilynG1 · ‎April 13, 2023

Life insurance dividends are not taxable. They are treated as tax-free returns of premiums. But if you are earning interest on your dividends, the interest gain is taxable.

Here's more info on Life Insurance Dividends.

@panarl

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Mike9241 · ‎April 13, 2023

NOT TAXABLE - if they were you would have gotten a 1099-Div

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Do I need to include dividends from an insurance policy as income IF the money is used to pay the dividend and/or put in to additional paid up insurance?