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May 29, 2024
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death benefit

  • May 29, 2024
  • 1 reply
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if i received a death benefit when my parent passed away, how much tax will i owe, and can i pay it now?

 

Best answer by John-H2021

The percentage of tax will be based on your total income from all sources. 

1 reply

John-H2021
May 29, 2024

If it is a death benefit from a life insurance policy then it is not taxable. If it is from a retirement plan it is taxable and taxes should be withheld when the money is disbursed to you.

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May 29, 2024

Hi again,

 

it was from a retirement plan. Do you know the % ill have to pay? (10% - 20%)?

May 29, 2024

20% was withheld when it was disbursed, so im good right?