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What Taxes Are Due On A Life Insurance Payout?

Life Insurance
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Tax Professional Answers

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Charles Woodson, EA
Generally death benefit proceeds from life insurance are not taxable. If proceeds are held in account for the beneficiary the insurance company usually pay interests, which is taxable.
Leave a Comment 308 weeks ago

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Michael Cash
On death benefits, zero. If you are cashing in a whole life policy the amount of the payout that is in excess of premiums paid is ordinary income and the company will send you a Form 1099. If there is a policy loan, that is not part of the equation.
Leave a Comment 307 weeks ago

 

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