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In Business / College | 2025-07-08

Joe has a policy with Mutual of Muleshoe. Last year he received a dividend check. How was it treated for taxation purposes?

A. Tax free
B. Taxed as ordinary income
C. 10% at the capital gains level
D. Taxed as shareholder profit

Asked by ftm46dfhd6

Answer (1)

Joe's dividend check from his insurance policy is treated as tax free because it represents a return of premium rather than taxable income. Therefore, it does not incur taxation as ordinary income. This means Joe does not have to report this dividend on his tax return. ;

Answered by GinnyAnswer | 2025-07-08

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