Did you inherit the house and then sell it? If so, then yes, you would need to report the sale of the home on your taxes.
Or did it go to an estate and then you are getting money from the estate?
Life insurance is generally not taxable income. However, if there is an investment company handling it and this money is earning money, then any profit from the investment that you received is taxable.
It sounds like you may also have income from self-employment that will need to be reported on your return. To enter your self-employment income select the following:
- Federal
- Income and Expenses
- Show More next to Self-Employment
- Start next to Self-Employment
- Yes, to you have any self-employment income or expenses
- Enter the type of self-employment work you do and you can select that you use your name for your business
- Click through a few more screens and you will get to a screen that says "Your XX info"
- Click Looks good
- Then you will come to a screen that says Let's enter the income for your business. It will give you the option of 1099-NEC or Other self-employed income including the 1099K , cash and checks. Here is where you will enter the money you receive.
- If you do not select one, it will not let you enter your income
- Enter your self-employment income on the next screen
- Continue and on the next screen click add expenses
* Please note navigation may differ slightly depending on which version of TurboTax you are using*
This income will be reported on Schedule C which is part of your overall tax return. This also means you will be subject to SE Tax. If you did not pay SE Taxes in 2024, and if you plan to do this again in 2025, it may be a good idea to make quarterly estimated payments to cover your SE taxes of 15.3% and avoid penalties.
If there is an investment company handling your inheritance, it may be a good idea to upgrade to TurboTax live so you c can discuss your situation in greater detail and they can help you with your return.
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