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My mom passed away on 12/28/2012 and I inherited almost $24K in life insurance policy. I received the money and deposited it to my checking account on 02/05/2013.
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It is exempt from federal taxes. If you are in Missouri, it is exempt from state taxes too.
Answered on Aug 06th, 2013 at 12:04 AM
This money is not taxable income, although it could affect your right to the Homestead Tax Credit on your Michigan Income Tax return as it is income for purposes of calculating the credit.
Answered on Jul 26th, 2013 at 9:20 AM
No, life insurance proceeds recieved by a beneficiary of a policy upon the death of the insured are not taxable income to the recipient.
Answered on Jul 25th, 2013 at 8:11 PM
If life insurance, then it is neither income or estate taxable to you. However, your state may have an inheritance tax and you will need to look into that.
Answered on Jul 25th, 2013 at 5:13 PM