It depends on the policy, and what your relationship is and the amount of the policy. When my husband passed away, I was not taxed on the benefit, when my father passed away, neither my sister or I were taxed. I would check with your insurance agent to get the most accurate information. Or contact the company that issued the policy. Get it in writing.
Generally, if you receive the proceeds under a life insurance contract because of the death of the insured person, the benefits are not taxable income and do not have to be reported. Any INTEREST you receive would be taxable and would need to be reported just like any other interest received (like interest you would receive from a savings account).
December 17th, 2008 at 7:44 am
i think so
December 17th, 2008 at 7:44 am
yes
December 17th, 2008 at 7:44 am
No they are not. If they are held and interest is earned on them then the intrest portion is but the death proceeds are not.
December 17th, 2008 at 7:44 am
yes
December 17th, 2008 at 7:44 am
It depends on the policy, and what your relationship is and the amount of the policy. When my husband passed away, I was not taxed on the benefit, when my father passed away, neither my sister or I were taxed. I would check with your insurance agent to get the most accurate information. Or contact the company that issued the policy. Get it in writing.
December 17th, 2008 at 7:44 am
Generally, if you receive the proceeds under a life insurance contract because of the death of the insured person, the benefits are not taxable income and do not have to be reported. Any INTEREST you receive would be taxable and would need to be reported just like any other interest received (like interest you would receive from a savings account).
December 17th, 2008 at 7:44 am
yes
December 17th, 2008 at 7:44 am
Neeandchris have the correct answer. You can check it out at IRS.gov or look in most any 1040 instruction book.
December 17th, 2008 at 7:44 am
Generally speaking, life insurance proceeds are not taxable to beneficiaries.
August 21st, 2011 at 6:48 pm
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