Cancle of life insurance

[thongyoi]

I was deciding of cancle my life insurance because I was upset about the sale rep. that he didn't tell me about all the charges. The insurance company decided to give me all the money that I have paid over one year as rescind. A question is: Do I have to claim this as an income or not? Because this money is my money not any dividend or interested paid. Thank you for your concern.
Thongyoi

 

[I AM ALWAYS LIABLE]

I was deciding of cancle my life insurance because I was upset about the sale rep. that he didn't tell me about all the charges. The insurance company decided to give me all the money that I have paid over one year as rescind. A question is: Do I have to claim this as an income or not? Because this money is my money not any dividend or interested paid. Thank you for your concern.
Thongyoi

Dear Thong:

No. There's no tax on refunds. The presumption is that this money has already been taxed when you first earned the money.

It's as if the money never left your bank account, and all the parties are placed back in the same position as they started one year ago.

IAAL

 

[thongyoi]

Thank you very much.

 

[I AM ALWAYS LIABLE]

My response:

You're entirely welcome, Thong.

IAAL