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

Kiddie tax

The tax on the investment income in excess of $1,700 (may change after 2007) of a child under age 18, based on the parents’ marginal tax rate and computed on Form 8615.

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