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I cashed in a life insurance policy. Do I claim it on my taxes? I did not receive a tax form from the company.

 
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I cashed in a life insurance policy. Do I claim it on my taxes? I did not receive a tax form from the company.

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.

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New Member

I cashed in a life insurance policy. Do I claim it on my taxes? I did not receive a tax form from the company.

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.

View solution in original post

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