You'll need to sign in or create an account to connect with an expert.
You should contact your agent for that information.
You should contact your agent for that information.
Borrowed money is not your money, so you don't pay tax on money that is not yours. With a loan against life insurance proceeds, the only way it would become your money and thus taxable, would be if you did not pay it back as agreed. In some cases, if you die before paying it back, the unpaid balance may be taxable. If your state taxes income, they may see things different from the federal IRS. So you should seek information on that from your insurance provider "and" a tax pro in your local area. I would not expect your insurance provider to be that knowledgable on the tax front. But I would expect a tax pro to know the facts as they pertain to "your" life insurance policy, after they review the policy and the terms of the loan.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
olegyk
Level 1
emmakemery
New Member
sues1008
New Member
preacherboy44-gm
New Member
Mom2twingles
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.