Death Payment

[ec135h]

Received a VA death benefit ($5000.00) for my father-in law who passed away in Feb. 2025. Have not received a 1099 as of this text. Is the total amount taxable for tax year 2025.

[CatinaT1]

No. The $5,000 VA death benefit you received for your father-in-law is not taxable. You do not need to enter this anywhere in TurboTax.  for 2025.

According to IRS Publication 525, any benefits paid to veterans or their survivors under any law, regulation, or administrative practice administered by the VA are completely excluded from gross taxable income.