Cashed in Life Ins Policy
Beachgirl56
Member Posts: 4 Newcomer
We cashed in our ins. policy and received money. Does that need to be included as income even though there are no taxable gains? We were going to pay taxes on it and they told us we did not need too. I don't want to add as income and be taxed if I do not have to. We paid the balance of our mortgage with the money we received. Thanks for the help!
Best Answer
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That is a great question! Every situation is different so the IRS has a great tool you can use to help determine if the Life Insurance proceeds are taxable. I have provided a link to the IRS Interactive tool.
Answers
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Thank you! I did the test and my proceeds are not taxable.