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 Payment Coupon 2019

1120l 2019-2025 Form

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Instructions and help about irs form life

I'm going to cover the tax treatment of insurance premiums of death benefits of proceeds and dividends and all that Goods so dividends dividends in a whole life policy are not taxable because they're essentially unused premiums so what happens is a company you pay your premiums and when you're when you have a policy with a insurance company that pays dividends on your Whole Life policies you're paying a little extra every month and what the company does is they take that money and they invest it and at the end of the year they say based on their earnings and how many claims they paid out they say hey did we make a profit and if they do they give you some of that profit back in the form of a dividend so it's like earning like interest extra interest on the money that you put into the policy that dividend is not taxed or it's not taxed at all because it's technically unused premiums because the company's just saying well the

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