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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12703
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Well my husband was terminal and after he died I received

Customer Question

well my husband was terminal and after he died I received life insurance I was on disability due to stress so we had no money. we have not filed in years. he was terminal and on disability too due I file taxes don't know what to do. social###-##-#### Maureen koerner due I pay tax on life insurance - spousal please let me know
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: the accountant wants to charge 300 per hour do you know at all if pa requires to file inform irs of spousal life insurance
Submitted: 9 months ago.
Category: Tax
Expert:  Lane replied 9 months ago.

Hi My name's Lane.

...

No, death benefits from a life insurance policy are not taxable, at either the federal or state level.

...

Now, sometimes a survivors pension can be taxable, but a simple lump sum from life insurance because someone passed is NOT taxable.

Expert:  Lane replied 9 months ago.

See this from IRS:

...

Question: Do I report proceeds paid under a life insurance contract as taxable income?

Answer:

  • Generally, life insurance proceeds you receive as a beneficiary due to the death of the insured person, aren't includable in gross income and you don't have report them.
Expert:  Lane replied 9 months ago.

Please let me know if you have ANY questions at all, before rating me

But if this has helped, and you don’t have other questions, I would appreciate a positive rating (using those stars on your screen – and clicking submit)

That’s the only way JustAnswer will compensate me for the work here.

Thanks,

Lane

I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.