Do You Have To Pay State Or Federal Taxes On Money Received From A Life Insurance Policy?
Posted June 28, 2009 – 10:27 am in: structured settlements FAQMy dad died last Feb. and my mom received life insurance money. Will she have to pay taxes on this and if so, what info does she take with her when she gets her taxes done?
Tags: Federal, From, Have, Insurance, Life, Money, Policy, Received, State, Taxes
2 Comments
Life Insurance proceeds are not taxable. There is a chance however that the ploicy earned some interest. You would have received a 1099-INT for any amount. Note that it is still a little early, give it a week or call the company – they can tell you if there was any taxable income associated with the policy.
No taxes are due on death claims.