Ask Terry Questions Do I need to file a tax return for a life insurance payout

Do I need to file a tax return for a life insurance payout

By Terry Savage on April 16, 2022 | Insurance & Annuities

Hi Terry, my mom passed away this last September and I was the beneficiary of a small life insurance policy. The payment I received was approximately $25k. I had no other income as I haven’t worked in the last 2 years. Do I need to file a tax return for the death benefit payment? From what I have read online it indicates no but I just wanted to make sure
Thanks Michele Cederquist

Terry Says

No. Life insurance proceeds are not taxable to the recipient.

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