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Month: September 2020

How are Life Insurance Payouts Taxed?

Milford, NH Resident Looks for Advice

When money is paid from a life insurance policy upon death, the money is not considered taxable income and the beneficiary does not have to pay taxes.  If the money is not immediately paid out but is held by the insurance company for some reason, interest that is generated during that time may be subject to taxes.  If the insurance is paid to the estate, as opposed to a beneficiary, you may have to pay an estate tax on the money.

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What are the Reasons to Amend a Tax Return?

Nashua, NH Resident Asks for Advice

Amending a tax return in your favor can give you money back that you had not been entitled to before these changes.  Amendments such as claiming overlooked deductions, IRS rule changes, miscalculations and a corrected 1099 or W2 can all work in your favor, giving you a larger return.  You will want to make changes to past tax returns if there are errors that may be flagged by the IRS, including unreported income.

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