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Ins premiums rebated for deceased

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    Ins premiums rebated for deceased

    Question is client was the beneficiary of an inheritance from a relitave in 2005 that was well below the taxable level. In 2006 the ins co called and said they overcharged him for his premiums and needed to refund the overpayment to my client. Is there any way to get this income excluded from income this year and be put into his estate?

    Any help is greatly appriciated!!

    #2
    I do not know the exact answer to the question, but would suggest that you consider the following. Life insurance premiums are not deductible on Schedule A, so since they were not deductible, would getting some of them back be a taxable income item? Perhaps they should ask the insurance company if a 1099 will even be issued for the returned premiums.

    LT
    Only in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut".

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