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Resident Alien Life Insurance taxation

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dtonersf

Junior Member
What is the name of your state? NJ
My mother is a resident alien with a SSN, my father is a US resident with failing health.
My father beleives that my mother will lose the majority of the life insurance benefits due to her status. Is this true, how do I verify this information? If so, are there other approaches to prevent this los of income (living will, changing beneficiary, etc?)

I found some information on the IRS website that seemed to indicate that "Withholding may be reduced or eliminated if covered by an income tax treaty
between the U.S. and the non-resident alien's country of residence if the payee
provides a U.S. taxpayer identification number on a completed Form W-8BEN"What is the name of your state?
 


anteater

Senior Member
What is the name of your state? NJ
....My father beleives that my mother will lose the majority of the life insurance benefits due to her status. Is this true, how do I verify this information?...
Since proceeds from life insurance are generally not considered income, I don't see any reason why your mother would "lose" anything.

Give the IRS a call to confirm. 1-800-829-1040

http://www.irs.gov/contact/index.html
 

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