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

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.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
Financial FAQs

Search the most frequently asked finance and accounting questions and read the responses from PICPA members. Always consult a CPA before taking action.