Martin received $80,000 from a $100,000 life insurance policy as an accelerated death benefit. None of the $80,000 is taxable to her.

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According to the IRS, accelerated death benefits are generally not taxable if they are paid to a terminally ill or chronically ill individual. As long as Martin meets the eligibility criteria, none of the $80,000 received as an accelerated death benefit is taxable to her.

Martin Received $80,000 from a $100,000 Life Insurance Policy as an Accelerated