How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55294
Experience:  29 years of experience as a tax, real estate, and business attorney.
Type Your Tax Question Here...
Richard is online now
A new question is answered every 9 seconds

IS a check from an insurance company from a insurance policy

This answer was rated:

IS a check from an insurance company from a insurance policy considered as taxable income on an individual tax return?
Hi! My name is XXXXX XXXXX I look forward to helping you!

Can you elaborate a bit? What kind of insurance are you talking about? Is this a life insurance payout? Health insurance? Some other kind of insurance payment? Thanks.
Customer: replied 3 years ago.

Life Insurance Payout

Thanks for responding so quickly. Life insurance payouts are not considered income and thus are not included in the recipient's income tax return. Thus no income tax reporting or tax consequences to the recipient. If the policy was owned by the decedent, rather than by, for example, a life insurance trust, then the amount would be included in the decedent's estate and could be subject to an estate tax if the total estate is taxable. But, there are no income tax consequences or reporting requirements.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). I thank you in advance for taking the time to provide me a positive rating!

Richard and other Tax Specialists are ready to help you
Thank you so much for the positive rating! I truly appreciate you taking the time to do that! Have a great day!