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So I will be receiving money from my mothers life insurance policy. It will be in the state of FL so I know I'll be taxed correct? Now does the insurance company take the money out or will I receive something at the end of the year for my taxes to file? TIA
Are you sure? I was told different. Not that I care but I thought you always got taxed on insurance and inheritance money as well??
Life insurance, not except in a few very specific cases that probably don't apply to you.
Inheritance, maybe. The estate will have to pay taxes if the value is over 5.2 million or something like that (it will be paid before the estate is transferred to you). If your mom lived in Indiana, Nebraska, or Pennsylvania you will have to pay an inheritence tax. And if the estate includes tax deferred accounts such as a 401(k) you will have to pay inocme tax when you take distributions.
Are you sure? I was told different. Not that I care but I thought you always got taxed on insurance and inheritance money as well??
based on the scenario in your Original Post...I am 100% positive*.
*this is assuming that you are talking about receiving the death benefit. If you are receiving something other than death benefits, then you *might* have a taxable event. If it is death benefits, then I am sorry for your loss.
Last edited by midwestlaxer; 08-08-2014 at 12:30 PM..
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