Hello, I am cashing out a life insurance policy. Next year I will have to pay taxes on part of it. State and fed. How much on $6,817.31?

[RichardG]

That depends.  Cashing in a life insurance policy is like selling any other asset--you only pay income tax on your profit.  Your profit will be the proceeds received from the insurance company less the amount you invested in the contract over the years.  The insurance company should be able to provide you with this figure if you don't have those records.  The profit will be ordinary income.