Am I required to report on my 1040 the benefit payment I received from an aunt's life insurance policy?

by **chatima** » Tue Apr 05, 2011 10:12 am

I worked for the IRS 16 years

Generally, if you receive the proceeds under a life insurance contract because of the death of the insured person, the benefits are not includable in gross income and do not have to be reported:

Any interest you receive would be taxable and would need to be reported just like any other interest received.
If the policy was transferred to you for cash or other valuable consideration, the exclusion for the proceeds is limited to the sum of the consideration you paid, additional premiums you paid, and certain other amounts.
There are some exceptions to this rule.

by **eleder** » Tue Apr 05, 2011 10:14 am

No. Life insurance proceeds are not taxable to the beneficiary.

by **adiel** » Tue Apr 05, 2011 10:18 am

If any of it was reportable then you would have received a 1099.

by **chadd** » Tue Apr 05, 2011 10:21 am

No. It's not taxable income.

by **hutton** » Tue Apr 05, 2011 10:24 am

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