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by AARP Tax-Aide, AARP, February 19,2008
Q: Both my mother and father died in 2007 within 90 days of one another. I received a life insurance check with myself as the beneficiary for $1,100 from my father and $6,800 from my mother. Should these be entered on my and my husband's income tax forms?
A: Life insurance proceeds received because of the death of the insured are not taxable income to you, and you need not report them on your tax return.
These questions are actual inquiries submitted by taxpayers to our AARP Tax-Aide Program. The AARP Tax-Aide Program is a volunteer-run, free tax-preparation and assistance program offered to low- and middle-income taxpayers with special attention to those age 60 and older. Our volunteers are trained and IRS-certified to understand individual federal-tax issues. Our volunteers provide tax assistance as a public service and cannot guarantee the accuracy of the information provided.
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