savings and child tax credit!
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montycat_2
Posts: 399 Forumite
Hello,
My husband recently died and I have 3 children.I have been put on max Child tax credit but now the insurances /pensions etc are paying out,I am wondering what counts as income!
Thanks
My husband recently died and I have 3 children.I have been put on max Child tax credit but now the insurances /pensions etc are paying out,I am wondering what counts as income!
Thanks
0
Comments
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In general, life insurance payouts are not taxable - and the tax credit rules mostly mimic the income tax rules. I see that you are considering either paying off your mortgage with the payout (or offsetting in a flexible mortgage), but if you have a significant remainder to invest/save, you will need to declare any interest etc you receive (beyond the £300 limit) as part of your tax credit income.
Pensions are generally taxable (apart from any tax-free lump sums) so will count as income.
Are you working? If not, your pension plus savings income will need to be more than £13,910 before it starts to affect your tax credit award.
Good luck - sorting all this out during what is already such a difficult time must be very hard.
irs0
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