My dad passed away 2 years ago and when finishing up his estate, we found that he had a life policy. I believe the check sent to me was in December of 2023 (I have to double check) but I did not cash it til February of 2024. I did not receive any tax paperwork on this benefit for tax purposes, just the letter attached to the check. Do I claim it for taxes 2023 or 2024? What do I need to do?
No, You will not receive any paperwork.
The life insurance payment you received is an inheritance and is not taxable.
You can take the money and celebrate the memory of your dad.
Thank you so much for your response. I still do need to list it on my return though, correct? Just not taxable?
No. You don't report the life insurance proceeds on your tax return.
However, any income you derived from this money (such as interest) is taxable.