Question by  codyligon (107)

Do I have to pay taxes on a life insurance settlement?


Answer by  azcuminer (74)

Yes you will be required to pay taxes. Taxes will need to be paid, especially if you withdrew the money from a qualified policy or have received it as an annuity. This type of income will be listed as additional income for taxation purposes and your insurance carrier should give you a 1099 as a result.

posted by Anonymous
This is incorrect. You will not have to pay taxes on payout resulting from death. You would pay taxes on a policy where you withdrew money for personal use.  add a comment

Answer by  Anonymous

Do I have to pay income tax on a Home Fire Insurance settlement


Answer by  gmspence99hotmailcom (2)

For UK life assurance pays out free of capital gains and income tax, however should the settlement take deceased estate above inheritance tax allowance then tax chargeable at 40%

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