Back Taxes and Life Insurance

by Don
(Texas)

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

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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

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FIRE INSURANCE PAYOUT

IN CANADA IS FIRE INSURANCE PAYOUT CONSIDER INCOME?

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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.

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Insurance/Settlement Payment

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

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Life Insurance Policy Redemption

by Judy
(NYC)

Are the proceeds from redeeming a life Insurance Policy taxable?

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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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