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Returning Member
posted Nov 16, 2022 10:38:16 AM

Inheritance and life insurance received

My mother passed away in 2021 in Canada where she and I was born. As one of three living children I was a beneficiary of a life insurance death benefit and a 1/3 share of her estate. I'm a US citizen and have resided in the US since 1999. Estate settlement went through the normal probate in Canada and taxes due were paid. My question is: Do I report the life insurance and inheritance funds received? If so, where on the return? And am I subject to additional taxes on either payment?

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1 Replies
Expert Alumni
Nov 16, 2022 12:56:45 PM

The simple answer is no.   You are not subject to taxation on payouts from inheritances or life insurance policies.

 

However, if the amount you received was more than $100,000 you must file Form 3520 which is a report of the amount received.   It does not incur a tax liability.