What Are The Tax Consequences Of A Life Insurance Policy That I Received From A Family Memeber??
January 19th, 2010 - ByPosted in Life Insurance
I received a Form 702 from a small life insurance settlement & am not sure if I will owe any taxes on this. My first & only clue so far is that when running through TurboTax there doesn’t appear to be any section to reference or include this inheritence. Please help & let me know how you found it out or where I can find more info. Thank you!!
3 Responses to “What Are The Tax Consequences Of A Life Insurance Policy That I Received From A Family Memeber??”
January 19th, 2010 at 1:22 pm
This is an estate tax issue. You will not find it in turbotax because turbotax is for income tax only.
If you inherit the policy, then the settlement proceeds are not taxable to you. The original policy holder had already paid his or her share of estate tax, if any.
January 19th, 2010 at 1:51 pm
If you mean that you were the beneficiary of a deceased person’s insurance policy, that is not taxable income.
January 19th, 2010 at 4:10 pm
If you were a beneficiary of a life insurance policy the proceeds are not taxable.
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