Legal Question in Tax Law in New York

Must I report the proceeds from my aunt's annuity to the IRS when I do my taxes? She named me as beneficiary along with 2 others.

We are each getting 113,000$.

And... what about life insurance policy proceeds?

Asked on 8/07/17, 11:41 am

1 Answer from Attorneys

Richard Bryan Richard Bryan Attorney PC

Life insurance policy death benefits are almost always free from income taxes, but there are exceptions.

Annuity proceeds paid by reason of death are trickier because there are various kinds of annuities (qualified, non qualified, or a mixture of both); and various types of payout options. At the beginning of next year the insurance company will send out a 1099-R and report the amount of the payment which is taxable income. There's no way to give an an exact answer to your question without seeing the paperwork.

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Answered on 8/07/17, 12:33 pm

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