answersLogoWhite

Top Answer
User Avatar
Wiki User
Answered 2011-02-27 15:12:52

Personal life insurance proceeds are generally paid out free of income taxes as long as the premiums were paid with after-tax dollars. But if a business paid the premiums and deducted the premiums as an operating expense, then the life insurance proceeds would be taxable to the beneficiary.

001
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0
User Avatar

Your Answer

Related Questions


"Insurance and Taxes. No. All proceeds or withdrawals from any insurance policy are not taxable." This is not true. If you cancel a life insurance policy, the growth on the cash value IS TAXABLE. If you do not surrender your policy, the money is taken as a loan and therefore not taxable, but interest that has to be paid back to the insurance company grows.


Money taken out of a salary for such things as taxes, insurance, and retirement funds are called deductions.


With a properly named beneficiary there are no federal taxes on life insurance. What exactly are you asking in your question?


If you are receiving dividends from a life insurance policy, do you have to pay taxes and what %


The answer to the question of whether or not beneficiaries have to pay taxes on the money received from life insurance policies is: no they will not have to.


If you are an individual who receives the life insurance proceeds, you may not have to pay any federal income taxes on the benefits. If the life insurance policy names a trust as beneficiary, the trust may be subject to estate taxes.


How can you find out if life insurance has been taken out in your name with or without your knowledge.?


Generally as personally owned life insurance you would not deduct the premiums on your taxes. This would make the normally nontaxable death benefit subject to taxation.


received life insurance from my deceased father and it wasn't probated but added to his probate estate for taxes and 9 years later they want me to pay all the taxes. is this correct


Money taken out of a salary for such things as taxes, insurance, and retirement funds are called deductions.



If the owner of the policy is not a business, you would not have to pay taxes on a life insurance benefit payout. You should consult with a tax professional in your state for more details.



You may have to pay capital gains taxes on a life insurance settlement in addition to any income taxes you might owe. Consult with a CPA or tax attorney to learn more about what tax consequences that a life insurance settlement may have.


How do I find out if my deseased father has a life insurance policy


Usually, life insurance proceeds are free from federal taxes. If the beneficiary is an individual person/persons, the proceeds of a life isnurance policy are tax-free. If the beneficiary of a life insurance policy is the "Estate" of the insured person, the proceeds may be subject to estate taxes.


Proceeds from a life insurance policy to a beneficiary are usually paid free from federal income tax.


Life insurance is life insurance. Estate taxes is estate taxes. Never the twain shall meet. The survivor receives a check from the insurance company and if he or she is responsible for any estate taxes, it's his or her responsibility. Not the company's. That's why I always recommend my friends to read Norman Dacey's (sp) book How to Avoid Probate II. Lawyers hate this book.


That is the beauty of life insurance~! With a properly named beneficiary there are no taxes and it avoids probate!


Life insurance death benefits are passed to beneficiaries income tax free.


Life Insurance benefits are usually not subject to taxes. It is a benefit, not a gift or income.


No Income Tax, but there might be Estate Taxes.


taxes are taken out if you ask them to.


a monkey. I dont even know what a benefical life insurance is. Too Hard For MEH.


Your gross is the TOTAL amount. Your net would be the amount after all of the deductions are taken out. (health insurance, dental insurance, child support, federal taxes, local taxes, etc.) Each individual is different.



Copyright ยฉ 2021 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.