US Life insurance payout from a Canadian resident

[stephaniemajor99]

My father is a Canadian resident who just died in Canada in 2023. What will the tax impact be for me regarding the life insurance proceeds I will be getting from his US based life Insurance? I am wondering if the fact he was a Canadian resident has an impact in taxation/filing and if I need to be proactive.

[MartyG]

Hi Stephaniemajor99 again!!

First of all, I'm sorry for your loss.

I am assuming that you are a US Resident.  In the US, life insurance proceeds received by the beneficiary are not Taxable Income.  It would not matter if your father was a non-US resident, as it is US based life insurance proceeds, and the recipient (you) is a US resident.

See this website:  https://www.irs.gov/faqs/interest-dividends-other-types-of-income/life-insurance-disability-insuranc...