Premium Refund + Interest Payment

State Farm sent me a check in 2015 for $38.13 (i.e. $23.42 homeowner premium refund + $14.71 interest payment). This is as a result of a homeowner rate settlement agreement between State Farms Lloyds and the Texas Department of Insurance.

I am guessing that the IRS will want to tax the $14.71 but not the $23.42 portion. Right?

Reply to
tb
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Right.

Unless, of course, your homeowner's insurance premium had been (partially) deductible for some reason, such as your taking a home office deduction for a business.

Reply to
Arthur Rubin

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