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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13336
Experience:  15years with H & R Block. Divisional leader, Instructor
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I AM SURRENDERING A LIFE INSURANCE POLICY THAT HAS A LOAN ATTATCHED.

Customer Question

I AM SURRENDERING A LIFE INSURANCE POLICY THAT HAS A LOAN ATTATCHED. IT WILL CREATE 24,000$ REULAR INCOME IN MY TAXES. SHOULD I HAVE THE ENTIRE 6,000$ CASH OUT WITHHELD FOR TAXES?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.
Hello,You should have the withholding because you are correct that his will be a taxable event for you. To have the withholding performed you will protect yourself from a large balance due when you file.The amount will be added to your income and at regular rate. You would have to estimate what your total income will be with the $24k added to know for sure if the $6000 is needed. If you tell me what your other income amounts are I can better advise if the $6000 is required.But you can have it all withheld if you want to be very safe. Any excess would be refunded to you when you file.
Expert:  Robin D. replied 1 year ago.
Please advise if you want me to estimate your tax.

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