Anna received $15,000 from life insurance paid upon the death of her grandmother. Anna can exclude the entire amount of the life insurance from her gross income.

Question

Quizplus · Accepted Answer

Life insurance proceeds paid to an individual as a result of the death of the insured person are generally not included in the recipient's gross income and thus not subject to income tax. Therefore, Anna can exclude the entire amount of $15,000 from her gross income.

Anna Received $15,000 from Life Insurance Paid Upon the Death