PatriciaV
Expert Alumni

Retirement tax questions

As the beneficiary of the life insurance policy, your spouse inherited the cash value from her father. The taxable amount, if any, is the amount she received that is more than the premiums that were paid over the years.  If you don't know the total premiums, contact the life insurance company for this information. In most cases, the cash distribution is far less than the premiums paid, which results in no taxable gain.

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