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. No 1099-DIV was
ever sent to me and the check was for less than $25.00.

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? Or maybe I
should not list it at all?

Which one is more correct?

Thanks.
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tb

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Archived from group: misc>taxes>moderated

ebetts3 · Joined: 25 Aug 2007 Posts: 55

On Feb 26, 9:28 pm, Tiziano wrote:

It's not reported. Their word of "dividend" doesn't refer to stock
owned. It's a return of some of your premiums. Now if the insurance
was reported on a Schedule C or F, you would have to reduce the cost
shown there.

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