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bakroenig
Level 1

My parents took out a life insurance policy on me as a baby. It matured this year and the company sent me a check. Is this taxable?

 
3 Replies
macuser_22
Level 15

My parents took out a life insurance policy on me as a baby. It matured this year and the company sent me a check. Is this taxable?

Depends.  Did you receive a 1099-R with an amount inbox 2a or box 2b "not determined" checked?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
bakroenig
Level 1

My parents took out a life insurance policy on me as a baby. It matured this year and the company sent me a check. Is this taxable?

I did receive a 1099-R with an amount in 2a but some people tell me I may have received it by mistake.  I called the company yesterday and was told they would return my call in 48 hours.

NCperson
Level 15

My parents took out a life insurance policy on me as a baby. It matured this year and the company sent me a check. Is this taxable?

the increased value of the policy (think interest over all those years) would be taxable income. 

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