NAMED beneficiaries of insurance policies do not pay tax on it.
No a spouse is not to pay the taxes which are due by her dead spouse.
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.
No, not unless you deducted the cost of the insurance on your taxes.
Depends on the type of insurance and what the payout is for. Life insurance is generally not taxable. Other types may well be. If for a casualty loss it would not be only if it is equal or tless than your actual loss AND you did not claim the casulaty loss as a deduction.
If this person was a spouse, see this article: http://irsmind.blogspot.com/2008/07/q-filing-return-for-deceased-spouse.html Hope that helps! Andrea http://www.TaxFacts4U.com
I take it that the two of you filed separate returns and kept your funds separate. You are probably not responsible for your deceased spouse's federal income tax. However, your deceased spouse's estate is responsible for his or her federal income tax. That is if there is enough money in the estate to pay the taxes. Otherwise, you may need a good tax lawyer.
The life insurance payout is not taxable. There may be estate taxes though. The value of the life insurance policy might be in the estate. This can be confusing as some taxes apply and some don't. The interest earned may be income taxable, etc. If there are expenses they should be deducted and then the net amount split up.
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
new york life says no. but I find different answers on line. wish I could get a correct answer.
If they had taxable income this year, they will need to have their taxes filed. You being the spouse are probably the best to do it. I am in a similar situation, my grandmother and father passed away this year. I was the caretaker for both of them. I will be filing taxes for both of them. I am able to do it for both because I am the administrator of both estates. If your spouse passed away in 2010, the best thing to do is file as you guys normally did.
You mean a casualty insurance payout? The amount that is for the loss of property is not taxable - as long as you didn't (and don't) claim a casualty loss on it for tax. (The payment means you have no tax loss).
Life Insurance benefits are usually not subject to taxes. It is a benefit, not a gift or income.