Can I deduct life insurance premiums?

July 09, 2019 by Frank Thomas, EA
Family under umbrella that says Life Insurance

Life insurance premiums are generally not deductible on your tax return. This is because the IRS considers it a personal expense. However, there are few exceptions, such as life insurance premiums paid by a business for its employees may be deductible as a business expense of the business, provided the business is not a beneficiary of the life insurance policy or benefits from the policy in any way and certain other conditions are met. A beneficiary is the individual or entity who receives the death benefit money in the event of death. On a positive note, generally the death benefit money received by a beneficiary due to the death of an individual is tax-free.

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