I surrendered life insurance policies. Is the Cash value paid to me taxable?

I had three whole life insurance policies.  I surrendered them.  Is the cash value paid to me considered taxable income?  The amount is less than the premiums paid.
    Cancel
    If you cash in a life insurance policy you may have taxable income.  The taxable income would be -

    --- the cash surrender value that you received, minus
    --- premiums paid over the life of the policy.  On a mutual policy, premiums are net of participating dividends.

    Generally, this only results in income on older policies.  Your insurance company should send you a Form 1099-R for the income to report.
    Cancel
    Judy - you should have received a Form 1099-R which is entered under the wages and income tab for pensions.
    • We surrendered two old policies and never received a 1099. Do we go by the fact the insurance company didn'r send one as there is no tax due/reported to the IRS?
    Cancel
    MPDSR - I would contact the insurance company to verify that first, especially if they were old policies.
    • We also surrendered life insurance policies. We did not receive any 1099. When I called the insurance co they told me there was no gain on the policies so therefore no taxes.
    Cancel
    I received 21,560.50, per the 1099R form I only have 8,150.63 that is taxable
      Cancel
      Contribute an answer

      People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

      1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
      2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
      3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
      4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
      5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.
      Cancel