2007-02-21 04:36:52 · 4 answers · asked by PGEDS 1 in Business & Finance ➔ Taxes ➔ United States
No, life insurance proceeds are not taxed.
2007-02-21 04:41:14 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You would only owe taxes on that amount if the proceeds were sent to your parent's estate, then the estate gave it to you. This usually only happens when the owner of the policy did not designate a beneficiary on the life insurance policy.
However, most life insruance policies pay directly to the beneficiary, and not to an estate.
2007-02-21 04:45:35 · answer #2 · answered by j-man 4 · 0⤊ 0⤋
No taxes due because I received a death claim too not long ago and never paid taxes on it.
If you check your 1040 form, it never ask if you received any insurance claim.
2007-02-23 09:25:16 · answer #3 · answered by Anonymous · 1⤊ 1⤋
No. It is not taxed. It is called a death benefit. I get money to go to school from my dads pension. He died and that's the money I get. They don't report it to the IRS.
2007-02-21 04:45:16 · answer #4 · answered by sportman16977 2 · 0⤊ 0⤋