Do you have to pay taxes on money received from a life insurance policy?

Answer 1

Typically no (assuming you are the benficiary)

Answer 2

Life insurance policy beneficiaries NEVER have to pay income tax on the amounts received. In fact, inheritances are rarely taxable to the beneficiary, except in the case of traditional IRAs which are taxable to beneficiaries.

www.irs.gov

Answer 3

If you are the beneficiary no taxes would be due. If you sell the policy or cash it in then there cold be income. On a sale the gain would be the difference between the sale price and the cash value. If you cash it in then the insurance company would have to compute the income and send you a 1099R.

Answer 4

If you are the beneficiary - I beleive you don;'t have to pay any taxes.....BUT check with an insurance broker or better yet with an accountant.. You may actually find an answer on Yahoo Finance section....

Answer 5

No you dont have to pay taxes if its a death benefit and you are the benifciary unless its over a certain amount which I believe is 600,000.00.

Answer 6

in case you cashed on your own coverage, you will owe tax. regardless of the easy actuality that, in case you are the beneficiary of the coverage of somebody who died, then the face quantity of the coverage is non-taxable to you. The coverage company is had to record form 712 "existence coverage fact" with the IRS and grant you a reproduction. it particularly is achievable that between the date of demise and the date the verify grew to grow to be into mailed that the coverage earned activity, wherein case you will ought to record this activity on your taxes. if it particularly is the case, you will receive a type 1099-Int from the coverage company.