2007-09-16 10:57:42 · 5 answers · asked by Anonymous in Business & Finance ➔ Insurance
No, if you are the benficiary. Possibly yes, since an insurance policy is part of the owners estate. If the estate is worth less than, now I believe it is around 2-2.5 mil, there will be no taxes at all. If over this, then there WILL be estate taxes but no income taxes.
It's good to get a thumbs down when you tell the truth. Thank you, please give more.
The estate of the deceased CAN and WILL be taxed if the estate exceeds IRS rules as of this year. Understand that the recipient of the proceeds WILL NOT be taxed but the estate is different and it CAN be taxed. Look up estate tax laws. It has nothing to do with how much premiums or anything like that. That has ONLY to do with withdrawing the cash value. If money taken out of CV exceeds by portion the amount amount paid in premiums, then yes there is a tax. But for amount paid due to death, NO taxes to the beneficiary but POSSIBLE taxes to the decedants estate.
Sorry insuranceguytx, this can and has been answered here.
2007-09-16 12:08:01 · answer #1 · answered by Mark S 6 · 0⤊ 2⤋
Need more information, but death benefits paid from a life insurance policy are usually not taxed at all. It can sometimes depend on whether the premiums were paid with pretax or after tax dollars, or if you received the life insurance as a benefit (at work or other) if the premiums were taxed to you as additional compensation.
2007-09-16 11:04:45 · answer #2 · answered by mia 3 · 1⤊ 0⤋
Go meet with a financial professional of a tax advisor.
No one here knows your financial postion and thus cannot give you an answer.
2007-09-16 14:43:56 · answer #3 · answered by insuranceguytx 5 · 1⤊ 1⤋
No.
You are taxed once on it. Whoever the beneficiary is may also be subject to taxes, but it won't be you!
2007-09-16 11:12:01 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Would you explain why you think that you might be?
2007-09-16 11:00:55 · answer #5 · answered by Judy 7 · 0⤊ 0⤋