I know that life insurance is not counted as income therefore is not subjected to IRS but when I get to the question on my state form it asks if I received a payout due to an life insurance policy do I have to report it I know that I'm not going to have to pay taxes on it but it's a little weird that they would ask that question is it going to be on my final tax return because I don't have that money anymore it's all been spent on debts
