Does my mom need to claim as income the money she received from my dad’s life insurance policy?

by Amy M. Swartzfager, CPA | Feb 26, 2019
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My mom received $60,000 from my dad's life insurance policy. Does she need to claim this as income? She did not receive a 1099-MISC from the insurance company. Additionally, the insurance company did mail a Form 712 Life Insurance Statement. Does my father's estate have to file a tax return?

The life insurance proceeds are not taxable to your mom since life insurance premiums are paid with post-tax income.
 
I recommend you consult a tax adviser or estate attorney to determine whether your father’s estate needs to file a tax return, as there are many factors to consider.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Amy M. Swartzfager, CPA, is a senior tax analyst with API Technologies Corp. in Fairview, Pa.

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