Life Insurance Proceeds

[klucich]

What is the name of your state (only U.S. law)? MO
I understand that proceeds we receive from a relatives life insurance policy are not taxable. That being said, when I fill out my taxes and report that income, do I mark that as non-taxable? I remember doing something like that when rolling over IRA accounts.

Thanks

 

[LdiJ]

What is the name of your state (only U.S. law)? MO
I understand that proceeds we receive from a relatives life insurance policy are not taxable. That being said, when I fill out my taxes and report that income, do I mark that as non-taxable? I remember doing something like that when rolling over IRA accounts.

Thanks

If its purely a life insurance policy then you would receive no tax documents and would not include it on your tax return at all. If its not purely a life insurance policy, but has some component of taxability, then you will receive tax documents and will enter them the way that they read.

 

[klucich]

If its purely a life insurance policy then you would receive no tax documents and would not include it on your tax return at all. If its not purely a life insurance policy, but has some component of taxability, then you will receive tax documents and will enter them the way that they read.

Thank you, that is great!