LIFE INSURANCE PROCEEDS: Life insurance proceeds paid upon the death of an insured are not taxable unless the policy was turned over for a price. This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. However, interest income received as a result of life insurance proceeds may be taxable. If death benefits are paid in a lump sum or other than at regular intervals, include in income only the amount of benefits that are more than the amount payable at the time of the insured person’s death. If the benefit payable at the death is not specifically, include in income the benefit payment that are more than the present value of the payments at the time of death. Note: if insurance proceeds are paid because of the death of a spouse before October 23, 1986, and those payments are received in installments, exclude up to $1,000 a year of the interest included in the installments, even if the taxpayer remarries. When the other advisors stop. We start. Free consultation: 800-558-6821 #stephensbrostaxservice #lumpsumpayment #lifeinsurance @hollywoodplay #riphollywoodplay #installmentpayment #insurance #brooklyn #brookynbridge #hollywood #contract #taxable #nontaxable #interestincome #health #policy (at Tavern Lounge) https://www.instagram.com/p/BpsJswrnn_e/?utm_source=ig_tumblr_share&igshid=1cqmva2jqc50u
