Are taxes due when you claim life insurance policies?

Answer You only need to include the insurance policy money as part of your gross income on your taxes if the amount exceeds the amount payable to you at the time of the person's death. For example, if th... Read More »

Top Q&A For: Are taxes due when you claim life insurance pol...

Can you claim life insurance payments on your taxes?

No, you cannot deduct the cost of life insurance payments on your tax return. Additionally, while businesses are able to deduct the cost of insuring an office building, they may not deduct the cost... Read More »

Are insurance policies subject to inheritance taxes?

On One Hand: Federal TaxabilityInheritance tax assesses a beneficiary's receipt of property by inheritance, pursuant to the FDIC's Trust Examination Manual. This differs from estate tax, which taxe... Read More »

How many life insurance policies can one have?

As long as you can pay the premium, there is no limit to how many life insurance policies you may own. If purchasing multiple policies, remember to keep a master copy of all the information in a sa... Read More »

Do you have to pay taxes on insurance claim money?

According to the Internal Revenue Service, generally speaking money received as a benefit from a life insurance policy is non-taxable. There are some exceptions to this rule. Consult with a tax adv... Read More »