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.

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Tax Glossary

Exemption

A fixed deduction allowed to every taxpayer, except those who may be claimed as a dependent by another person. Extra exemption deductions are allowed for a spouse on a joint return and for each qualifying dependent. A deduction of $3,400 is allowed for each exemption claimed on 2007 returns, but the deduction is phased out for certain high income individuals.

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