Life Insurance Taxes!

[mykalahawk]

Jurisdiction

Other

My deceased family member who had life insurance put me on as a beneficiary and I was compensated. I recently received a notice in the mail from her life insurance company stating a taxable amount of 13,074.86. I am confused because this should be tax free money since taxes were being paid on the policy already. I would really appreciate your feedback .
Thank you!

 

[army judge]

My deceased family member who had life insurance put me on as a beneficiary and I was compensated. I recently received a notice in the mail from her life insurance company stating a taxable amount of 13,074.86. I am confused because this should be tax free money since taxes were being paid on the policy already. I would really appreciate your feedback .
Thank you!

I'm sure you've already asked the insurance company for an explanation, right?

What were you told?

This might clarify things for you, mate:
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When You Pay Taxes on a Life Insurance Payout and How to Avoid Them

 

[adjusterjack]

I recently received a notice in the mail from her life insurance company stating a taxable amount of 13,074.86.

What kind of policy?

There are several kinds of life insurance. Some can generate taxable income.