Is Life Insurance Taxable?

download (6)Life insurance proceeds are usually not taxable if they are paid to a specifically named beneficiary, such as your spouse or children. The life insurance proceeds may become taxable, however, if you name your estate as the beneficiary. At that point, the proceeds become a part of your estate, and can be subject to estate taxes.

Federal Student Tax Scam

ScamAlertThe IRS has issued a warning to taxpayers about bogus phone calls from people impersonating agency employees who demand payment for a non-existent tax that is referred to as the “Federal Student Tax.” (IR 2016-81) While the filing deadline has passed, scammers continue to use varied strategies to trick people, IRS said, adding that, in this case, students are being targeted. As described by the agency, if the victim does not react quickly enough to the demand for this fake “federal student tax,” the scammer threatens to report the student to the police. “These scams and schemes continue to evolve nationwide, and now they’re trying to trick students,” said IRS Commissioner John Koskinen. “Taxpayers should remain vigilant and not fall prey to these aggressive calls demanding immediate payment of a tax supposedly owed.” For further information, go to https://www.irs.gov/uac/newsroom/irs-warns-of-latest-scam-variation-involving-bogus-federal-student-tax.