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Get your taxes done using TurboTax
Hi @Dgyoung15. I'm so sorry for your and your daughter's loss.
Generally, life insurance proceeds you receive as a beneficiary due to the death of the insured are not includable in gross income and you don't have to report them (i.e., they're neither reportable or taxable).
Should you decide to give those proceeds to your daughter, they would not be taxable to your daughter. Having said that, depending upon the amount of the proceeds, you may have to pay a gift tax on the gift of more than $17,000 (or $34,000 for a married couple) to your daughter. These are the annual exclusion amounts for 2023.
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‎June 28, 2023
12:57 PM