Submitted By: Helen
Answered: April 15, 2014 8:30 am

Is the $255 death benefit from Social Security that I received when my spouse died taxable?

No. This lump-sum death payment is tax free.

advertisement
Tax Glossary

Boot

Generally, the receipt of cash or its equivalent accompanying an exchange of property. In a tax-free exchange, boot is subject to immediate tax.

More terms