JBedford
Employee Tax Expert

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Hi, @Dgyoung15 , thanks for the question! To answer, as a general rule, life insurance proceeds are not taxable. Additionally, bona fide gifts are generally not taxable to the recipient. However, it does count toward your "lifetime exclusion limit", as explained in this TurboTax article

 

Hope this helps, please let me know if this raises additional questions! 

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