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amojoyce
New Member

Are dividends from an insurance policy taxable

I am asking about dividends paid for being a policy holder of auto and home through NJM. All the other questions listed are about life insurance dividends which are not relevant to what I am asking. please confirm if this is considered taxable income this dividend distribution. Thanks

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Accepted Solutions
MinhT
Expert Alumni

Are dividends from an insurance policy taxable

Dividends received from NJM Insurance are considered as discounts on your insurance premiums and are not taxable.

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5 Replies
MinhT
Expert Alumni

Are dividends from an insurance policy taxable

Dividends received from NJM Insurance are considered as discounts on your insurance premiums and are not taxable.

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ErpJdp
Level 1

Are dividends from an insurance policy taxable

Are dividends from a life insurance policy still in effect considered as taxable income?

VictoriaD75
Employee Tax Expert

Are dividends from an insurance policy taxable

If you have a cash value life insurance policy that pays dividends, you may be liable to pay taxes on the amount of dividends that exceed the amount of the premiums paid for the policy.  Otherwise, policy dividends are generally not taxable. You will receive a Form 1099-DIV by Jan. 31 citing the amount of dividends paid that must be included in your taxable income.

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ErpJdp
Level 1

Are dividends from an insurance policy taxable

I never received a 1099- Div form from the insurer. 

JohnW222
Expert Alumni

Are dividends from an insurance policy taxable

@ErpJdp

The insurer won't generally issue a Form 1099-DIV if the amount they've paid in dividends, including capital gain dividends and exempt-interest dividends, and other distributions on stock are less than $10.

If your situation fits the taxable scenario described above, the amount you received was $10 or more, and you still haven't received Form 1099-DIV, you should contact the insurer.

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