Hi, I am trying to pay tax on an inheritance from a life insurance policy I am trying to figure out what it goes under when filing?

Forum|Forum|1 year ago
February 14, 2025
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What or where can I put my inheritance tax on the tax form? What does inheritance tax fall inder?

ThomasM125

Most life insurance proceeds are not taxable. Can you clarify that you received a tax form reporting income, and if so what is the form number? Inheritance tax is not reported on a personal federal tax return Form 1040.

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garnerkristin528Author

You are right I need to file it on a separate form. Thank you for taking the time to respond to my question.

M-MTax

Did you pay state inheritance tax? If so, that particular state tax is not deductible on your federal income tax return (1040).

If you are referring to federal income tax on the proceeds you received, life insurance proceeds paid to a beneficiary are not taxable on your federal income tax return.

garnerkristin528Author

Hi, thank you for your response to my question. I am pretty sure that there was a question on the form that asked if I wanted 10% deduct for taxes on the check I was receiving. I was unsure how to answer so I didn't have the 10% deducted. I got a form from Prudential saying I needed to put the amount of $324 on my taxes. I was unable to find the spot when filing to put it. I think I need to do a separate form to file. Thank you again for your time.