Life insurance taxable??
#8020514
12/14/23 09:40 AM
12/14/23 09:40 AM
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Joined: Jun 2007
Posts: 4,721 Illinois
foxkidd44
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OP
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Illinois
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Ok gang, I’m not very smart when it comes to stuff like this… but is life insurance counted as taxable income when the insurance company pays out??
Stand by your principles, Stand by your guns, and victory complete and permanent is sure at last. Abraham Lincoln
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Re: Life insurance taxable??
[Re: foxkidd44]
#8020515
12/14/23 09:41 AM
12/14/23 09:41 AM
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Joined: Jan 2007
Posts: 422 Iowa
ou812
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Re: Life insurance taxable??
[Re: foxkidd44]
#8020542
12/14/23 10:18 AM
12/14/23 10:18 AM
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Joined: Dec 2013
Posts: 9,395 Northern MN
Osky
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Can be in some states. Some people set up irrevocable life insurance trusts for the proceeds/payouts to avoid some tax burden. See a professional, a GOOD professional in your state for the correct answer.
Osky
"A womans heart is the hardest rock the Almighty has put on this earth, and I can find no sign on it" Jabless in Minnesota www.SureDockusa.com
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Re: Life insurance taxable??
[Re: foxkidd44]
#8020577
12/14/23 11:25 AM
12/14/23 11:25 AM
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Joined: Dec 2006
Posts: 15,885 MN, Land of 10,000 Lakes
Trapper7
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The death benefit isn't usually taxable. On a whole life policy, the dividends are in most cases.
A gun is like a parachute. If you need one, and don't have one, you'll probably never need one again.
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Re: Life insurance taxable??
[Re: foxkidd44]
#8020610
12/14/23 12:04 PM
12/14/23 12:04 PM
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Joined: Feb 2010
Posts: 19,724 pa
hippie
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Just went thru this. On two of my mothers policies I paid around 10%, these were annuity type life insurance policies and Nationwide withheld the tax. The other was mass mutual and they sent me the whole amount. Pa. Is one of 6 states to levy an inheritance tax I found out. The rate for me was 4.5% of paid within 90 days, then it goes to 9.5%. This is on the estates worth. https://www.revenue.pa.gov/TaxTypes/InheritanceTax/Pages/default.aspx
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Re: Life insurance taxable??
[Re: foxkidd44]
#8020698
12/14/23 01:57 PM
12/14/23 01:57 PM
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Joined: Dec 2022
Posts: 4,675 illinois
jalstat
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Ok gang, I’m not very smart when it comes to stuff like this… but is life insurance counted as taxable income when the insurance company pays out?? No sir not in Illinois
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Re: Life insurance taxable??
[Re: foxkidd44]
#8020745
12/14/23 03:10 PM
12/14/23 03:10 PM
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Joined: Feb 2010
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Re: Life insurance taxable??
[Re: SNIPERBBB]
#8020763
12/14/23 03:38 PM
12/14/23 03:38 PM
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Joined: Feb 2010
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Might want to talk to a local financial/estate planner to give you some ideas/options Yep! I went to my accountant to find out why 2 were taxed and one wasn't.
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