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Life insurance death benefits are paid out tax-free as long as your premiums were paid with after-tax money. If you have a cash value life insurance policy and surrender the policy, you may be subject to a taxable gain if the total cash value exceeds the cost basis of the policy.

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โˆ™ 2010-04-28 05:19:01
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Q: Do you have to pay taxes on life insurance?
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Related questions

Do you have to pay taxes on a life insurance pay out IN THE UK?

no


Does the beneficiary of a life insurance policy have to pay taxes on the proceeds?

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.


Do you have to pay taxes on your life insurance cash surrender?

no


When are dividends taxed on life insurance?

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


Do you have to pay taxes when you receive money from a life insurance claim?

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.


Do I pay taxes on a life insurance payout?

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.


Does the beneficiary have to pay taxes on a life insurance policy he has collected on?

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


Do you have to pay taxes on a life insurance pay out in Pennsylvania?

There are conditions depending on how the premium was paid, but generally, no.


Do you have to pay taxes on a cancer insurance claim?

In the USA you do not pay taxes on the Proceeds from an Insurance Claim.


Do you pay taxes on a life insurance lump sum distribution at the age of 85?

The death benefit of Life Insurance is tax free.


Do you have to pay state taxes on medical insurance in the state of Washington?

do you have to pay taxes on medical insurance in the state of Washington


Do you pay taxes on house insurance claim?

income taxes ? no insurance payments are exempt


Do you have to pay taxes on benefits from a life insurance policy?

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


Does a surviving spouse pay income tax on proceeds from a life insurance policy?

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


Your husband died and left you a life insurance policy do you have to pay any taxes on it?

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


Do you have to pay taxes on money borrowed against paid up life insurance?

Borrowed money is not taxable.


What are the tax consequences of a life insurance settlement?

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.


Does a spouse of deceased have to pay taxes on insurance payout?

NAMED beneficiaries of insurance policies do not pay tax on it.


Do you pay taxes on a business insurance settlement from a fire?

No


Do you have to pay taxes on a health insurance policy settlement?

No.


Do you have to pay taxes on benefits from a life insurance policy in CT?

The benefits from a life insurance policy are treated as part of the estate and subject to the estate tax. They are not subject to income tax.


Do you pay taxes on the settlement of an insurance claim?

You do not generally have to pay taxes on an insurance settlement claim. You can check with your tax firm or accountant for the rules specific to your state.


Do I need to pay taxes of receipt of a life insurance policy pay off?

Proceeds from a life insurance policy are usually not taxable. This is in the case where a person dies and the company pays the benefits. If a policy is cashed or money is withdrawn from the cash value then this does not apply and you may have taxes in these cases but not from the death benefit.


Can you deduct life insurance premiums on taxes?

No


If you cash in a life insurance policy do you have to pay taxes on it?

"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.