2007-12-01 03:36:52 · 3 answers · asked by dia m 1 in Business & Finance ➔ Taxes ➔ United States
If you have left dividends with the life insurance company, and the dividends have earned interest, that interest is taxable whether you take the money out or not.
If you have received money from a life insurance policy and that money has earned interest, that interest is taxable whether you take the money out or not.
So, if it is taxable, you will pay taxes on the interest. It doesn't matter that you have not withdrawn the interest.
2007-12-01 04:04:45 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
Is this your life insurance policy? Eg, whole life that has a cash value building up?
The dividends are considered rebates of the premiums paid, so until you take out more than you've paid in, it's not income.
2007-12-01 11:46:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If the company pays interest to your account, whether you take it out or leave it in doesn't matter - it's taxable income either way.
2007-12-01 12:56:19 · answer #3 · answered by Judy 7 · 0⤊ 0⤋