A soul (son) basically receive a settlement (cash) from a energy insurance policy, does he reward income excise?
Mom past away and the grill is whether the son is liable for any income tax from this settlement?
Answers:
Death benefits are not taxable since it is viewed as an insurance claim. For example, if you get into a car fluke and you had coup¨¦ insurance, the insurance company may pay you a claim to fix the coup¨¦. You do not pay taxes on the claim.
If you mean he be named as the beneficiary of Mom's natural life insurance policy, that is not taxable and does not stipulation to be reported to the IRS.
If he be the beneficiary of the policy, then it's not subject to taxes. If the estate be the beneficiary, and he inheirited it, it's subject to taxes.