How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Stephen G. Your Own Question
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6224
Experience:  Extensive Experience with Tax, Financial & Estate Issues
Type Your Tax Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

I have some whole life insurance poliicies that I am considering

Resolved Question:

I have some whole life insurance poliicies that I am considering to drop. I understand that if I cash them in I will be taxed on anything that is over and above my total amount of premiums paid. The amount over my total premiums comes to $10,000. I am in the 25% tax bracket living in Georgia. Can you tell me how much tax I would have to pay on this amount?
Submitted: 5 years ago.
Category: Tax
Expert:  Stephen G. replied 5 years ago.

Stephen E. Grizey :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.

Stephen E. Grizey :

Well, without knowing exactly where you fall in the 25% tax bracket, I can't be sure as when you add the $10,000. you may still stay within the 25% bracket or part of the $10,000. could be taxed at a higher rate. It sounds like you'd pay a minimum of $2,500. in Federal tax.

Stephen E. Grizey :

To be more specific with an estimate I'd need to know your filing status (Single or Married), number of exemptions, & your estimated taxable income (income after deductions and exemptions) not including the income from the insurance policies.

Stephen G. and other Tax Specialists are ready to help you

Related Tax Questions