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Is a dividend considered income?

My wife;s term life insurance policy annual dividend is enough to cover the annual premium. Is this dividend considered income and how do I report it?
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MinhT
Expert Alumni

Is a dividend considered income?

Dividends from a participating life insurance policy are not considered as taxable income by the IRS. The IRS treats these dividends as partial refunds of your premiums.

You do not need to report them on your tax return.

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1 Reply
MinhT
Expert Alumni

Is a dividend considered income?

Dividends from a participating life insurance policy are not considered as taxable income by the IRS. The IRS treats these dividends as partial refunds of your premiums.

You do not need to report them on your tax return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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