Medicaid has its own criteria for assets and income, so if you are on Medicaid, e.g., for health coverage, you can look into the requirements for your state.
Ren, I want to clarify, if mom bought the policy and named you beneficiary, then it is not income to you. However, if you bought a policy on your mom with you as the beneficiary, it is taxable income.
Sorry, I just went straight to inheritance without thinking about this could be a policy that mom didn't buy.
Always best to ask a Tax Accountant with with knowledge of your State tax laws.
You do not want to receive incorrect information from a forum. Incorrect information or ignorance is not a good reason when dealing with IRS or an audit.
No, inheritance, unless it is in the multi millions, I think 11 million, is non taxable.
I had a couple hundred dollars from my dad that was direct deposited in my account, so it showed up but, my CPA dealt with whatever reporting was required. It would have been the same if it had been a few million.
There are a few States that have an inheritance tax, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania. But, that isn't insurance, unless the insurance is a weird rider with the estate. However, if the insurance beneficiary wants to take it in installments, there would be taxes on the interest accrued.
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Sorry, I just went straight to inheritance without thinking about this could be a policy that mom didn't buy.
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You do not want to receive incorrect information from a forum. Incorrect information or ignorance is not a good reason when dealing with IRS or an audit.
I had a couple hundred dollars from my dad that was direct deposited in my account, so it showed up but, my CPA dealt with whatever reporting was required. It would have been the same if it had been a few million.
However, if the insurance beneficiary wants to take it in installments, there would be taxes on the interest accrued.