You'll need to sign in or create an account to connect with an expert.
If this was a policy on which you paid the premiums, taking the cash value of the policy is not taxable income.
The cash value of the policy is essentially the amount of premiums paid in excess of the cost of purchasing the policy, which is why it builds over time. As long as you (as opposed to an employer) paid the premiums, you are getting your own money back.
If this was a policy on which you paid the premiums, taking the cash value of the policy is not taxable income.
The cash value of the policy is essentially the amount of premiums paid in excess of the cost of purchasing the policy, which is why it builds over time. As long as you (as opposed to an employer) paid the premiums, you are getting your own money back.
What if your employer paid the premiums and cashed in the policy and gave you the cash value?
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
psfcadd_1
Level 1
DomN9
New Member
emmakemery
Level 1
sues1008
New Member
franthony77
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.