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In 2013 I got life insurance and now I have cancelled it…

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In 2013 I got...

In 2013 I got life insurance and now I have cancelled it because it was to expensive. my question is do I pay taxes on the surrender money which was $1257.41

Accountant's Assistant: The Expert will know how to help. Please tell me more, so we can help you best.

I just want to pay the tax if I will have to claim it as income.

Accountant's Assistant: Is there anything else the Expert should be aware of?

No, not that I can think of.

Submitted: 7 months ago.Category: Tax
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9/29/2017
Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 7 months ago
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,408
Experience: Certified Public Accountant
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Hi, my name is Mark. I will be happy to help you with your questions.

It is possible that a portion of the surrender value would be taxable. If you withdraw cash from a cash for a life insurance policy, the amount of withdrawals up to your basis in the policy will be tax free. Generally, your basis is the amount of premiums you have paid into the policy less any dividends or withdrawals you have previously taken.

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