Is life insurance taxable

[eortiz01757]

What is the name of your state (only U.S. law)? Massachusetts

Our dad died last month. He has a small life insurance policy that I am the beneficiary of. I have to split this 6 ways (for all 6 siblings) Is this taxable income? If so, how much should I withhold from each sibling so that I do not have a problem with my taxes in 2010

 

[Zigner]

What is the name of your state (only U.S. law)? Massachusetts

Our dad died last month. He has a small life insurance policy that I am the beneficiary of. I have to split this 6 ways (for all 6 siblings) Is this taxable income? If so, how much should I withhold from each sibling so that I do not have a problem with my taxes in 2010

Why do you need to split it? If you are the sole beneficiary, then it's yours.

If you receive the payout and then want to give gifts to your sibs, that's a different matter. How large is the policy?

 

[Antigone*]

What is the name of your state (only U.S. law)? Massachusetts

Our dad died last month. He has a small life insurance policy that I am the beneficiary of. I have to split this 6 ways (for all 6 siblings) Is this taxable income? If so, how much should I withhold from each sibling so that I do not have a problem with my taxes in 2010

The money you received as beneficiary of the policy is NOT taxable.