Submitted By: someone
Answered: June 16, 2019 9:30 pm

Is the union-provided death benefit I received as a surviving spouse taxable?

The exclusion of up to $5,000 for death benefits no longer applies. It had applied only for employees who died before August 21, 1996. Only a death gratuity paid to a survivor of a member of the Armed Forces continues to be excludable from gross income.

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Tax Glossary

Active participation

Test for determining deductibility of IRA deductions. Active participants in employer retirement plans are subject to IRA deduction phase-out rules if adjusted gross income exceeds certain threshold.

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