Naomi was the beneficiary of a $100,000 insurance policy on her mother who died in January 2018. It took the insurance company several months to make the payment so she received $100,206 in May 2018. She was a joint tenant on a bank account with her mother. She inherited the $14,000 in the account that had all been deposited by her mother. After a long battle with her medical insurance company, Naomi received a $7,000 reimbursement in 2018 for an operation that she underwent in 2016. As a result of her high medical expenses, she was able to claim $7,000 in itemized deductions on her 2016 tax return rather than taking the $6,300 standard deduction. What are Naomi's taxable income items from these events for 2018?

Question

Quizplus · Accepted Answer

The Answer of Naomi was the beneficiary of a $100,000 insurance policy on her mother who died in January 2018. It took the insurance company several months to make the payment so she received $100,206 in May 2018. She was a joint tenant on a bank account with her mother. She inherited the $14,000 in the account that had all been deposited by her mother. After a long battle with her medical insurance company, Naomi received a $7,000 reimbursement in 2018 for an operation that she underwent in 2016. As a result of her high medical expenses, she was able to claim $7,000 in itemized deductions on her 2016 tax return rather than taking the $6,300 standard deduction. What are Naomi's taxable income items from these events for 2018?

Naomi Was the Beneficiary of a $100,000 Insurance Policy on Her