Life Insurance Tax Implications

Summary

Life insurance payouts to beneficiaries in Louisiana are generally not subject to state income tax. However, any interest earned on the payout is taxable. If the IRS is contacting you, it may be due to interest income. Consult a tax professional for personalized advice.

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benificiary life ins taxes
Are you asking about the tax implications for a beneficiary of a life insurance policy?
sure
In general:

- Life insurance payouts to beneficiaries are typically tax-free.
- But, interest income is taxable.

Can you confirm your location to provide more specific information?
larose louisiana
Are you the beneficiary of the life insurance policy?

In Louisiana:
- Life insurance payouts are generally not subject to state income tax.
- Interest earned is taxable.

Larose nearest court: Lafourche Parish Clerk of Court, Phone: (*) *-*.
yes
As a beneficiary in Louisiana, you won't have to pay state income tax on life insurance payouts. However, any interest earned is taxable.
my tax lady said it wasn’t taxable and I did not have to file but the irs is still coming after me
Did you earn any interest on the life insurance payout? If so, that could be why the IRS is contacting you, as interest income is generally taxable.
i have no idea
Did you receive any additional amount over the original payout from the life insurance policy?
no
If you didn't receive any additional amount, it's unlikely you owe taxes on the payout. You may want to consult a tax professional for further assistance.