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QUESTION DETAIL
Related User
Votes
If I cash out an insurance policy, will I have a tax liability?
ANSWER
The BIDaWIZ Team's Answer:
If the cash surrender value is greater than the premiums and you surrender the policy, the excess is earnings and taxable income. 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.
