Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.
I'd like to know if you have to claim life insurance you receive when your husband dies. Even if you don't have to claim it, do you have to put it on the form?
Life insurance proceeds are generally not taxable. The interest you receive on the proceeds, usually from the date of death until the proceeds are paid, is taxable income. The insurance company should issue you a 1099 for the interest income only.
Corinne M. Bradac, CPA, Linton, Shafer & Co., Frederick
The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.
To ask a tax question, call Sundial, The Sun's telephone information service, at 410-783-1800. Call 410-268-7736 in Anne Arundel County, 410-836-5028 in Harford County, 410-848-0338 in Carroll County. Using a touch-tone phone, punch in the four-digit code 6225 after the greeting. You can also submit questions by e-mail through The Sun's Web site, www.sunspot.net/tax.
Selected questions will be answered in the Business section. No questions will be answered personally.