My Dad passed on, and a life insurance co sent me a small check for claim payment (split 4 due to siblings. I

Question

was wondering what kind of taxes a person has to pay on this kind of payment and do you pay state and federal?

Answer 1

First, I am very sorry for your loss.  Losing a parent is very difficult no matter the age or reason. Second, I am a paralegal in PA and in my experience Life Insurance is not a taxable event.  The best thing to do is contact the IRS at :

1-800-829-1040

Hours of Operation: Monday – Friday, 7:00 a.m. – 10:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).  

It might be a pain to call but when it comes to your taxes if you don't use caution, you may end up sorry. Good Luck.

Answer 2

if taxes were due, the insurance company would have asked you to fill out a W-9.

Answer 3

if you were listed as benificiary you should owe no tax

Answer 4

no tax liability to the benificiary