Amounts collected under accident and health insurance policies purchased by the taxpayer are excludible from income.

Question

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Amounts collected under accident and health insurance policies are generally excludable from income for tax purposes. However, there are some exceptions and limitations to this rule, such as when the premiums were paid for with pre-tax dollars or if the policy was purchased through a cafeteria plan.

Amounts Collected Under Accident and Health Insurance Policies Purchased by the Taxpayer