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No, the proceeds you receive from a reverse mortgage are not taxable to you. Reverse mortgage payments are considered loan advances and not income. Therefore, the amount you receive from a reverse mortgage isn't taxable. This applies regardless of whether the payments are received in a lump sum, monthly advances, a line of credit, or a combination of these methods.
Additionally, any interest (including original issue discount) accrued on a reverse mortgage isn't deductible until you actually pay it, which typically occurs when you pay off the loan in full. This interest is generally considered interest on home equity debt and is subject to the limitations on the deductibility of home equity debt interest.
Sources:
Publication 525 (2023)
Publication 554 (2022)
Publication 554 (2023)
Rev. Rul. 80-248
Publication 936 (2023)
