What Taxes Are Due On A Life Insurance Payout?
TaxConnections Members... Answer This Question
Want To be One of Our Tax Experts? Register Here
Tax Professional Answers
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
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