For Caregivers
Question: I received a death benefit from my parent’s life insurance policy. Are these insurance proceeds taxable to me?
Answer:
Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. However, interest income received as a result of life insurance proceeds may be taxable.
See Publication 525 Taxable and Nontaxable Income, for additional information.
Category: IRS Procedures
Subcategory: For Caregivers
