Question About Dividend Check From Insurance Company

Feb 27, 2008 1 Replies

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.


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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