2007-03-05 02:27:14 · 4 answers · asked by btweenatoms 2 in Business & Finance ➔ Taxes ➔ United States
If the check came from the insurance company you should get a 1099 and you will file receipt of the money but it most cases not owe taxes on it. Your question started with "inherited". If the check came from someone else, you should talk with a CPA about other taxable issues.
2007-03-05 02:45:20 · answer #1 · answered by riccker2 1 · 0⤊ 3⤋
Proceeds from life insurance policies are tax-free.
If the insurance company held it for some time before giving it to you, and the proceeds earned interest, (or you invested it and it earned interest), that interest is taxable.
2007-03-05 02:31:43 · answer #2 · answered by ninasgramma 7 · 2⤊ 0⤋
I don't think so because an insurance payout is due to a loss.
Do you have to claim an insurance payout if you wreck your car? No.Why would life insurance be any different.
However there could be an exception, I always recommend an attorney be consulted with a question like this.
2007-03-05 02:34:51 · answer #3 · answered by Anonymous · 0⤊ 3⤋
I think no need.
2007-03-05 02:35:25 · answer #4 · answered by khuranapvp 3 · 0⤊ 0⤋