Protecting Those Who Matter Most The slideshow presentation that you would like to view is too large for your current screen resolution. Click here to view to view the slideshow at full resolution. Launch Presentation » Have A Question About This Topic? Name Email Address Question Thank you! Oops! Related Content When Life Insurance Becomes Taxable Life insurance proceeds are generally tax-free. But not in all cases. Tax Deductions You Won't Believe Here are some examples of deductions from the IRS that were permitted and some that were, uh, too creative. Filing Final Tax Returns for the Deceased The federal government requires deceased individuals to file a final income tax return.