Surrender life insurance policy

[dkm1943]

I surrendered a life insurance policy.   Dividends were added to the policies value each year ( per the amount as stated on a yearly 1099 int).  I paid income taxe on those dividends each year.

After cashing in the policy I received a 1099R  which appears to have  made no allowance for the increase in value of the policy due to those dividends.   Since I have paid taxes on those dividends, it appears  I am being taxed twice.

Why is there no way to deduct the value of the dividends ( that have already had income tax paid on them) from the cash value (received)?

[Critter]

Contact the issuer for clarification and a corrected for if needed ... however those dividends probably paid part or all of the premiums  instead of increasing the basis in the policy  which is common. 

[dkm1943]

I do not think so.   It was a whole life policy with premiums fixed for the life of the policy.

[Critter]

Ask the payer for more info or a corrected form.