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PDtax, CPA firm owner
Category: Social Security
Satisfied Customers: 4028
Experience:  35 years tax and professional advice in all matters money
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My sister and I had a tax free life insurance policy

Customer Question

my sister and I had a tax free life insurance policy for each other, here in the state of Idaho , to help us, if one or the other past away, as we lived together as widows. In Sept of 2014 She pasted away. I have financially felt compelled to help her adult children who are just like my own, who fell on hard times, out of work and serious health issues. At the time because of their circumstances, I set no time line to be paid back, but what they can afford when they can.
I have received some that I have kept in cash and would like to deposit back into my checking account, when ever I can, but now Iam concerned that it might be mistaken as earned income, when in fact it is not and ding my Social Security. My question is how do I go about clarifying this as I have been retired for many years, and live on a tight budget and just want to make sure that I can depend on my social security, as I have been.
Submitted: 5 months ago.
Category: Social Security
Expert:  PDtax replied 5 months ago.
Hi from just answer. I'mCustomer I don't think you have to be concerned.
Expert:  PDtax replied 5 months ago.
Best if if you have evidence of the loans, like promissory notes, to show your cash is loan repayment from tax free life insurance. But, even if you don't have those notes, these deposits will not be considered earned income. You can support the source and deposit the funds with no worries.Thanks for asking at just answer. Positive feedback is appreciated. I'mCustomer