Ask Experts Questions for FREE Help !
Ask
    carl_r's Avatar
    carl_r Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Aug 28, 2008, 03:21 PM
    Tax Exempt status of Life Policy
    I am now a US citizen, I have an UK "life endowment policy with profits" which will shortly mature. I believe this sum is considered tax exempt in the UK. Is it also considered tax exempt in the US
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Aug 29, 2008, 10:07 AM
    Yes, it is tax-exempt, because the "dividends" from a life insurance policy is considered by the RS to merely be a refund of premiums paid and NOT true dividends.
    carl_r's Avatar
    carl_r Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Aug 29, 2008, 01:41 PM
    Quote Originally Posted by AtlantaTaxExpert
    Yes, it is tax-exempt, because the "dividends" from a life insurance policy is considered by the RS to merely be a refund of premiums paid and NOT true dividends.
    Thanks for your response. Does this have to be reported to the IRS, if so what form(s) is required. Thanks again
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Sep 1, 2008, 11:57 AM
    You do NOT have to report this to anyone.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Life insurance policy [ 3 Answers ]

Can you take life insurance out on anyone without there knowledge?

SS and Medicare Tax Exempt during OPT status & Marriage [ 5 Answers ]

Hi, I have a question about paying SS and Medicare taxes on OPT status. I came from Japan for a gruaduate school in NYC in August 2005, and started the OPT status since 5/21/07. My current employee (not for profit organization) is not knowledgeable in employing foreigners, and does not know...

Life Insurance Policy [ 2 Answers ]

My mother died on 9/22/06 and I was told she had a life insurance policy but have yet to find it. She was married to a man who was a drug addict but he never knew that she had one. What are the steps that I need to take to find one on her or to see if she ever had one? Please someone let me know...

Changing exempt status [ 1 Answers ]

Can you make a salary employee and hourly employee

Exempt status and does it apply to bonuses [ 1 Answers ]

Last year, after all was said and done I got back every nickel of fed income tax I paid in. I see nothing that would think it would be any different this year. Am I considered exempt? I usually claim 12-13 allowances on my w-4 due to my 5 children/wife and me being the sole bread winner, ...

View more questions Search