Does Anyone Know If We Have To File A Form For Income Tax On Life Insurance Recieved Last Year?
Posted July 15, 2009 – 10:19 pm in: structured settlements FAQWe received a check for seven thousand dollars for my father in law when he died from his life insurance, do we have to claim this on our income tax?
Tags: Anyone, Does, File, Form, Have, Income, Insurance, Know, Life, Recieved
2 Comments
This can be a tricky issue, but probably not. If the money came directly from the life insurance company, then no, that is not taxable income. If the money was originally paid to your father’s estate, then paid out to you, then you received an inheritance, thus making it taxable.
If you were named as a beneficiary on the policy, then it is not taxable.
Life insurance proceeds paid to you as the beneficiary are usually not taxable. But, if you receive the proceeds in installments, you must usually report a part of each installment payment as interest income.