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.

Tax Glossary

Section 457 plan

Deferred compensation plan set up by a state or local government, or tax-exempt organization, which allows tax-free deferrals of salary.

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