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Thread: FSGLI

  1. Super Speshil
    SoulCupcake's Avatar
    SoulCupcake is offline
    Super Speshil
    Join Date
    Jun 2010
    The point of no return. Is that a duty station?

    Question FSGLI

    Does anyone know if the benefits are taxable ? I can't reach DH to ask and the VA site isn't loading for me so I thought I'd ask here.
    Pax, Aeon
  2. Senior Member
    Cdawn45's Avatar
    Cdawn45 is offline
    Senior Member
    Join Date
    Dec 2005
    Hampton Roads
    Blog Entries
    I found this:
    SGLI is not taxable, to include interest from the time the payment is due until the time the payment is received

    MilitaryHOMEFRONT Detail - U.S. Department of Defense

    another :

    Are SGLI Proceeds Taxable?

    In general, all VA benefits are exempt from taxation. SGLI proceeds that are payable at the death of the insured are excluded from gross income for tax purposes. (The value of the proceeds, however, may be included in determining the value of an estate and that estate may ultimately be subject to tax.) If SGLI proceeds are paid to your beneficiary in 36 equal installments, the interest portion included in these installments is also exempt from taxation. In addition, delayed settlement interest (interest accrued from the date of the insured's death to the date of settlement) is also exempt from taxation. You are not required to report to the Internal Revenue Service (IRS) any installment interest or delayed settlement interest that you received in addition to the proceeds.

    Current Page Name, Servicemembers' and Veterans' Group Life Insurance (U.S. Department of Veterans Affairs)

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