How do you report life insurance income on your federal tax return?

9May/115

How do you report life insurance income on your federal tax return?

Question by Hmoob Koo Boi: How do you report life insurance income on your federal tax return?
My dad passed away recently and we got a check for $ 10,000 from his life insurance. The check was for my wife and I, but we are not legally married. How do we report that?

Best answer:

Answer by PJ
Life insurance proceeds are not taxable, but I'm not sure where you put them on the form.

What do you think? Answer below!

Share and Enjoy:

Tagged as: federal, Income, insurance, life, report, return Leave a comment

Comments (5) Trackbacks (0) ( subscribe to comments on this post )

Donna L
May 9th, 2011 - 19:08

I don’t believe that life insurance proceeds are taxable, but interest from investing them is. Call the IRS and ask them!

P. S. Depending on where you live and the laws that govern your area, referring to your partner as “my wife” could mean you ARE considered legally married under common law.
Chelmsford♥Reiki
May 9th, 2011 - 19:15

your allowed one untaxed gift for 10k or less. maybe it qualifies. talk to an lawyer or tax accountant. Turbo tax walks you through.
Greg F
May 9th, 2011 - 20:08

Ask your reprisenitve where because all states are different .
Dances with Aardvarks
May 9th, 2011 - 20:15

Life insurance proceeds are not taxable unless a portion of the payout included interest. Interest is only paid if they delayed in paying the claim and that would be unusual with a $ 10k payout. You don’t report it.
Michael M
May 9th, 2011 - 20:31

You will not have to report the $ 10,000 as income and will not pay income taxes on it. You will have to pay taxes on any interest or investment income you earned on the $ 10,000 during the year.