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In Reply to: Are life insurance benefits taxable? posted by Caden R. on March 10, 2010 at 04:11:21: life insurance benefits are usually not subject to federal income tax. There are exceptions, though, if the IRS deems your insurance policy to be an investment in disguise. Your insurance agent or tax lawyer should be able to tell you if your policy benefits will be taxable. : Are life insurance benefits taxable? : I have large liens from the IRS.
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