Not sure what kind of policy you have but Life Insurance is generally NOT taxable.
However, there are some exceptions.
https://www.irs.gov/faqs/interest-d...:text=Answer:,report it as interest received.
Not sure what kind of policy you have but Life Insurance is generally NOT taxable.
However, there are some exceptions.
https://www.irs.gov/faqs/interest-d...:text=Answer:,report it as interest received.
Generally only If he got over $11.1 million. Hey turkeyrun? Let me hold a dolla!
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See post #20.
Wait, I just caught that this was a burial 1099. You don't have to pay taxes on it, you adjust it out except for the $500 you didn't pay for burial. If you need help with that let me know, or you can tell your tax preparer to do it. You do have to pay for the bonds though. 
Sorry brother! (unless you say you used it to pay for education costs)
You can thank Clinton for repealing the law that exempted these funds, btw.
Sorry brother! (unless you say you used it to pay for education costs)You can thank Clinton for repealing the law that exempted these funds, btw.
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Missing 3 zeroes
The 1099 was filed as INT.
Evidently, policy was part of Dad's 401(k).
What TYPE of policy matters and they do TELL you the details, you must ASK.
The fine print and details matter.
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I'd like to see the inclusion paperwork on the 401k for the burial benefit. Seems like that should have been a 1099 MISC. It always is a MISC.
I'd file for an extension in this case (if you can't get it clarified today) and get that re-issued as a 1099-misc. Even if it was a burial plan that earned interest there shouldn't have been a 1099-int issued for the entire amount of the benefit. That's theft.
Did you roll it over into home property? Hard to spend apples-to-apples in Midwest what homes sell for in CA, but land can be included in the property to avoid taxes and build land position. We rolled rounded topped off heavy duty tandem dump truck of money from 93 acres into 3800 acres, 80 acre lake, lodge nand out buildings, really big boys toys, second residences property. etc. to slap Caesar's greedy hands. Great chance to pick up some land, save the dwelling deduction for later when, if you downsize, need late life care money. While lending rates were near zero, sold home rolled into property, then borrowed on the cheap...money and taxes have been on a fire sale for several years......against the property rolling the cash into life insurance which becomes non-taxable later when needed for care costs or for beneficiary after I'm gone. The cheap loan interest rates are tax deductible and essentially free rounding error facing higher taxes post-Jan, 2026 when Trump tax cuts die. Life insurance is currently a good way to beat the tax man. Bible instructs to Give unto Caesar what is Caesar's. Caesar and I rarely agree on what is Caesar's. Jesus didn't tell us not to contest Caesar's greedy position. Move taxable pot money into non-taxable pots. Of course, Caesar will always try to expand his claims......ie life savings, senior investments, IRAs, eventually even Roths.
We the Little Peeps...........er, Government, my bad, .........has been buying $400+ hammers and $1000+ toilet seats for decades. Government blew $17milion on sole bidder unused hotel rooms contracted for illegals very recently. Should put them up in the White House quad bunking with Ole sleepy Joey.
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