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Do you have to pay taxes on money inherited through a life insurance policy in Texas?

2 Answers

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  • 1 decade ago
    Favorite Answer

    No. Life insurance proceeds that you receive due to the death of the insured are not taxable income for federal income tax purposes. And since Texas has no state income tax, they wouldn't be taxable there either.

  • candy
    Lv 6
    1 decade ago

    yes you gotta pay taxes on everything

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