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June 1, 2019
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I received a dividend from my auto insurance provider this year (New Jersey Manufacturers). Is this dividend taxable?

  • June 1, 2019
  • 1 reply
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Best answer by ToddL

Unless you claimed a business deduction for your automobile insurance,  it is not taxable

While called a "dividend", it is a "return of premium paid". Automobile insurance premiums for personal-use of a vehicle are not deductible, so a return of any part of those premiums is not taxable.

1 reply

ToddLAnswer
Employee
June 1, 2019

Unless you claimed a business deduction for your automobile insurance,  it is not taxable

While called a "dividend", it is a "return of premium paid". Automobile insurance premiums for personal-use of a vehicle are not deductible, so a return of any part of those premiums is not taxable.