I have a life insurance policy that pays dividends. They roll over into the policy to increase the cash value. This year I took a payment out from the accumulated dividends. What are my tax implications? I've so far not received a 1099.

You’re screwed, Uncle Joe has got you...

Should probably be on a 1099-DIV. You should call your insurance company, or sign in online. A lot of entities are not sending physical forms anymore. You can get them electronically, or have to make a special request for it to be mailed.

Thanks coff. I'll get with them tomorrow.

Yeah, since you said that you took the money this year, you won't get a 1099 until next Jan/Feb time frame, but they might be able to tell you what if any they paid to the IRS or if you are on the hook at the end of the year to cover any taxes on the withdrawal.

OK that makes sense, thanks!

Distributions from life insurance are non reportable, non taxable unless you have a modified endowment contract. If you had one, you’d know because you’d have mail from the insurance company telling you your contract became a MEC.

In short, your tax implication is 0, that’s why you own that stuff

But they withheld taxes.

Then the question to ask your insurance company/agent is if it’s a modified endowment, MEC for short. Life insurance is irs section 7702 and not subject to taxes unless something gets messed up. It’s an easy answer to get and doesn’t require them doing any research. If it’s a MEC, to answer your question it would taxed as ordinary income. No penalties just income

I'll give $50 cash to be the beneficiary on that policy.