If you received 45000 from a life insurance annuity how much federal tax would you pay?

Answer 1

There is life insurance. There are annuities. Life insurance companies sell annuities, but annuities are not life insurance policies. The answer depends on which one is under discussion. There is no income tax on payouts from life insurance policies. Annuities are purchased. The purchase price forms the owner's (or beneficiary's) basis in the contract; that is, the part that will not be taxed. The remainder of the payout is earnings (interest, usually) that have never been taxed, so are taxable to the recipient. How much tax would be due depends on how much of the $45,000 is taxable earnings, as well as how much other income the recipient receives in the year of the payout.