Life insurance payout

pinkybdhs · ‎May 31, 2019

We received a life insurance on the passing of my mother-in-law. Do I need to include this on any of my taxes? Taxes were taken out already at time of payout...

LeeM · ‎May 31, 2019

No, life insurance is usually not taxable with some exceptions described in the FAQ below.

However, any interest on the proceeds (such as when the proceeds are delayed) are reportable. The beneficiaries should receive a Form 1099-INT with the amount of the interest paid.

For more information, you can review the TurboTax FAQ below:

https://ttlc.intuit.com/replies/4787394

View solution in original post

LeeM · ‎May 31, 2019

No, life insurance is usually not taxable with some exceptions described in the FAQ below.

However, any interest on the proceeds (such as when the proceeds are delayed) are reportable. The beneficiaries should receive a Form 1099-INT with the amount of the interest paid.

For more information, you can review the TurboTax FAQ below:

https://ttlc.intuit.com/replies/4787394