Origin: Due to Massachusetts' conformity with Internal Revenue Code (IRC) § 101, increases in the cash value of life insurance policies and annuities are not taxed until distributed to the policy holder. If the policy holder dies with the policy in force, the increase in value and the death benefit are excluded from income when paid to policy or annuity beneficiaries.
Origin: IRC § 101
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2022
FY2023
FY2024
FY2025
FY2026
Personal Income Tax
Exclusions from Gross Income
1.003
Exemption of Death Benefits and Interest on Life Insurance Policy and Annuity Cash Value
Due to Massachusetts' conformity with Internal Revenue Code (IRC) § 101, increases in the cash value of life insurance policies and annuities are not taxed until distributed to the policy holder. If the policy holder dies with the policy in force, the increase in value and the death benefit are excluded from income when paid to policy or annuity beneficiaries.
<a href="https://www.law.cornell.edu/uscode/text/26/101" target="_blank">IRC § 101</a>
335.8
371.4
408.6
420.3
442.7
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