Back Taxes and Life Insurance Income Tax Question

by Don
(Texas)

Insurance Income Tax Question

Can the IRS take the life insurance I leave my wife upon my death?

Cashing in Insurance Policy

Nova Scotia tax, In easy terms, please explain how I figure if I need to pay tax on insurance that I cashed in.

Over the years i paid in premiums 1000.00 per year for approx 20 years. Some years they took the payment out because it was a tough year and couldn't pay the premium. I generally got an annual dividend of approx 500.00 a year.

This year I closed it out (had to) by getting the balance left of 14k. I had taken 3k as a loan the year before but didn't pay it back. The policy itself was for 100,000.00 So I have paid in approx 20,000 and had dividends of approx
5000.00 (didn't get 500.00 for the first few years) I have plenty of capital gains exemption left, can't I use that.

Also should not the Insurance Company have taken out the tax if indeed, I am required to pay some.
is it taxable the same as income. Thanks a lot

FIRE INSURANCE PAYOUT

IN CANADA IS FIRE INSURANCE PAYOUT CONSIDER INCOME?

Insurance Payment

by Christy
(Cork)

I'm due to recieve an insurance payment of 155,000 Euro for my deceased partner am I liable to pay tax on this and do I have to declare it.

I am now a single parent to two children and in full time employment and recieve no welfare assistance.

Insurance/Settlement Payment

We received an insurance settlement for an injury in an auto accident. Is that taxable?

Life Insurance Policy Redemption

by Judy
(NYC)

Are the proceeds from redeeming a life Insurance Policy taxable?

Whole Life Insurance Cashout

If I cashout a whole life insurance policy where would I enter it on my federal tax form?

Hello,

Thank you for your inquiry.

If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. You should receive a Form 1099-R showing the total proceeds and the taxable part. Report these amounts on lines 16a and 16b of Form 1040.

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