Question About Dividend Check From Insurance Company

Tiziano · Joined: 23 Feb 2008 Posts: 4

During 2007, my insurance company (State Farm) sent me a check for what
they call a "dividend". They explain that financial results were better
than expected and so the Board of Directors authorized a dividend check
representing a return of part of the premiums paid.

For my 2007 income tax return, should I list it under Part II, line 5,
of Schedule B, or should I list it on line 21 of my 1040?

Which one is more correct?

Thanks.
--
tb

Archived from group: us>taxes

P. Maffia · Joined: 10 Nov 2007 Posts: 117

Probably neither. If it was a return of premium, it is not income for tax
purposes. If, in fact, it is income to you, they would have sent you a 1099
Form if the amount exceeded $10. If you did not get a 1099 it probably isn't
taxable, but check with a tax pro.
"Tiziano" wrote in message @corp.supernews.com...
> During 2007, my insurance company (State Farm) sent me a check for what
> they call a "dividend". They explain that financial results were better
> than expected and so the Board of Directors authorized a dividend check
> representing a return of part of the premiums paid.
>
> For my 2007 income tax return, should I list it under Part II, line 5, of
> Schedule B, or should I list it on line 21 of my 1040?
>
> Which one is more correct?
>
> Thanks.
> --
> tb
>

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