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Are benefits from life insurance taxable income and do they have to be reported?

April 26, 2017Benefits income Life Insurance reported taxable

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Are benefits from life insurance taxable income and do they have to be reported?

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Generally, if you receive the proceeds because of the death of the insured person the benefits are not taxable income and do not have to be reported. Any interest you receive would be taxable and would need to be reported just like any other interest received. However, if the policy was turned over to you for a price, the proceeds are taxable.