2007-02-22 01:59:41 · 4 answers · asked by Learning is fun! 4 in Business & Finance ➔ Taxes ➔ United States
You were the beneficiary of the life insurance and the proceeds were held by your father. Any of the proceeds that are earnings from the insurance payment may be taxed to you if the insurance proceeds were put in your name at the time the insurance payment was made.
If this is the case you will receive an income document from the insurance company or financial institution that had the money invested. You would include this information on your tax return and would be taxed on the earnings.
If the money was given to your father and he held it in his name and then gave it to you, you will not owe any tax.
2007-02-22 02:31:11 · answer #1 · answered by ninasgramma 7 · 2⤊ 1⤋
2 things:
1. Anyone can give anyone up to $12,000/year as a gift, untaxed.
2. The recipient of the gift is never taxed (when more than $12,000), the giver is taxed - it's treated like the estate tax when people die.
2007-02-22 14:49:41 · answer #2 · answered by Quixotic 3 · 0⤊ 0⤋
Your father is allowed to give you a "gift" of $10,000 a year tax free. If you do it right and follow the right channels you will not be taxed.
2007-02-22 10:07:16 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Uncle Sam already has his hand out waiting for that money girl!!!
2007-02-22 10:08:17 · answer #4 · answered by SheSoFly 3 · 0⤊ 7⤋