If I inherit a life insurance policy paid by my Fathers Employer, Do I have to pay taxes on it?

You have two different ways this can be taxed; Federal and State. Unless your father left you a lot more than $25,000, Federal tax will not kick in. State tax however may. You will need to contact a tax accountant in your state to seek advice. In my state, when my father passed away, we ended up paying about 12% tax. That was many years ago.

Good Luck

The existence coverage includes her tax loose, yet except she makes use of her unified credit she'll (no longer you) ought to pay tax on the $50,000 she proficient to you. That section wasn't truly clever. She ought to had proficient the quantity to you over the years devoid of affecting present taxes. She might have given you $13,000 a three hundred and sixty 5 days freed from tax. the two way Zarnev is erroneous concerning to the earnings tax. you do no longer pay earnings tax on a contemporary.

You don't "inherit" a life insurance policy. You're a beneficiary. The vast majority of the time, it's flat out, not taxable income.

While your dad was an employee, he paid payroll taxes on the cost of this insurance. As a result, there is no taxes for you.

Death benefits paid to a beneficiary generally are not taxable.