Do you have to claim a life insurance inheritance on your taxes?

My husband just received a life insurance policy inheritance i guess you would call it from his grandmother's death. I was wondering if i was going to have to claim that on my taxes or not?

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Asked by Bluesdawg02 at 3:56 AM on Aug. 7, 2009 in Money & Work

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Generally speaking, a life insurance policy is non-taxable. They do not withhold tax & you do not need to claim it at tax time. My Dad died several years ago & my Mom did not have to pay any taxes on his life insurance. You can also check with the company or agent who issued the check on the policy.

Answer by funnyface1204 at 11:37 AM on Aug. 7, 2009
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No not at all taxes are paid already on it.

Answer by raemommy at 4:13 AM on Aug. 7, 2009
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I've gotten the check and they didn't take any taxes out of the check. Are they going to nail me at tax time?

Answer by Bluesdawg02 at 4:54 AM on Aug. 7, 2009
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Call the IRS 1-800-829-1040 - Hours of Operation: Monday â€“ Friday, 7:00 a.m. â€“ 10:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).

Answer by rkoloms at 9:00 AM on Aug. 7, 2009
Credits: 60732 Level 33 Money & Work Degree

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Typically, life insurance procceds are NOT taxable and not reportable on yoru taxes.

http://www.irs.gov/faqs/faq/0,,id=199751,00.html

Answer by Anonymous at 12:24 PM on Aug. 7, 2009

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